Friday 27 January 2017

Mixed week for the metals

It was a somewhat mixed week for the precious metals, with Gold and Silver seeing net weekly changes of -1.4% and +0.2% respectively. Near/mid term outlook is very uncertain, as the metals are clearly stuck just under old support... now acting as resistance.

GLD, weekly



SLV, weekly



Summary

Gold and silver are seeing resistance at what was once support.

The USD remains broadly strong, and its difficult to see Gold/Silver having broad upside, if the dollar is in the DXY 105/110 zone later this year.

For now... its a confusing mess.

The two indirect suggestions that gold/silver won't break the Dec'2016.. or more importantly - the Dec'2015 lows, are copper... and the related gold/silver miners.
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Best guess? I'm with copper and the gold/silver miners. I'll be looking for a break higher into the early spring. I need to see SLV >$18, and GLD >$124 to have real bullish confidence.