Gold, monthly2
Silver, monthly2
Summary
Dec'2015 saw Gold and Silver put in very important floors of $1060.50 and $13.82 respectively. From those lows, Gold and Silver rallied strongly into summer 2016, with peaks of $1377.50 and $21.23 respectively.
With the capital markets able to quickly shrug off BREXIT, market confidence climbed for the remainder of the year - not least via a Trump victory.The inherent fear bid that is a significant part of the precious metals was further eroded, which certainly contributed to cooling prices into year end.
The mid term trend for Gold and Silver is clearly still bearish. That only provisionally changes, if Gold $1300s. For full bullish clarity, I need to see the $1400s.
Note the MACD (blue bar histogram) cycle on the giant monthly cycles... both Gold and Silver are set to see price momentum turn outright bearish in Jan/Feb' 2017. By definition, further sig' downside is ahead in the short/mid term.
Arguably, the best outcome for the gold bugs would be if the metals managed to just churn sideways for 2-3 months, building a floor - much like late 2015. For now.. there is simply NO sign of such a floor.
-
As ever, the direction of gold and silver prices will have a massive impact on the related mining stocks. As noted elsewhere for the ETF of GDX, short/mid term outlook remains bearish.
