Metals pushing higher

Whilst equities saw minor chop, the metals jumped significantly higher at the open, and comfortably held the gains across the day. Gold and Silver climbed 1.7% and 4.3% respectively. Silver is now on the border of the old support floor, whilst Gold is still clearly below it.


GLD, daily

SLV, daily

Summary

Silver appears to be leading the way, and is highly suggestive that a short-term breakout is now underway.

The threat - and it was a serious one, of another collapse wave lower - as based on last weeks price action, is now seemingly OFF the agenda.

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If GLD and SLV can put in a few daily closes above the old busted May/June support floor, then the targets for Sept/Oct are...

GLD 142/147
SLV 25/26
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Despite that outlook, the mid-term targets remain unchanged, with GLD in the 90s, and SLV 12/10.
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Weekly gains for the metals

The precious metals saw further gains, with Gold and Silver closing with net weekly gains of 0.4% and 3.4% respectively. Near trend remains moderately bullish, but price formation is yet another bear flag, and considerably lower levels are expected in Sept/October


GLD, weekly, 3yr

SLV, weekly, 3yr

Summary

Interestingly, underlying MACD (blue bar histogram) cycle is now positive for both Gold and Silver, but still, the price action sure doesn't look very bullish.

Considering the even more important monthly charts, the current bear flags - which is what they very probably are, will likely be confirmed within the next few weeks..perhaps days.

Significantly lower levels for both Gold and Silver are expected.

Mid-term target remains GLD in the 90s, and SLV 12/10.

Strong gains for the metals

Whilst equities saw just moderate gains, the precious metals soared, with Gold and Silver closing at the highs of the day, with gains of 2.2% and 4.0% respectively. Despite the strong gains, the metals remain below key resistance, and the price action is very similar to early April...which didn't end well.


GLD,daily

SLV, daily

Summary

The precious metals certainly had one of their best days since the big gap higher on Mon' July 22.

However, the metals are actually STILL below the highs of that day..from almost 3 trading weeks ago. Any of the gold bugs getting hysterical over today's gains, really needs to stare at the above charts for a good 10-20 minutes.





Big trouble...next week?

The price action of the past few weeks looks VERY similar to late March/early April, and I am getting extremely suspicious of a 2-4 day smack down, towards the end of next week.