Precious metals on the edge

With the ECB reducing rates..and US GDP coming in better than market consensus, the metals got whacked in pre-market trading. Gold and Silver were weak across the day, both closing lower by 0.5%. Near term trend looks very...shaky.


GLD, daily

SLV, daily

Summary

Suffice to say, the metals look very much on the edge of a major snap lower. The underlying price momentum is bearish in the immediate term...and there remains mid/long term momentum that remains  deeply negative.
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Silver looks especially prone to a drop back below the $20 threshold.

Near term downside...Gold -$40 to the GLD 122 level, which looks viable, as early as tomorrow.

Metals see moderate gains

The precious metals managed to hold onto moderate gains, with Gold and Silver both closing higher by around 0.5%. Near term trend is rather choppy, but there remains an underlying strongly bearish weekly/monthly down trend.


GLD, daily

SLV, daily

Summary

The metals remain in a rather tight range.

Near term..moderate upside is viable...but there remains very negative price momentum on the bigger weekly/monthly charts.

I hold to my mid-term outlook...

A break of the June lows...with spot Gold prices in the 1050/950 zone...along with SIlver 12/10...sometime in 2014/early 2015.

Significant weekly declines for Gold and Silver

Whilst the main equity market broke to new highs, the precious metals market saw renewed declines this week, with Gold and Silver seeing net weekly declines of -2.65% and -2.95% respectively. If GLD fails to hold the 121s, then the June lows will likely be challenged before year end.


GLD, weekly

SLV, weekly

Summary

The precious metals continue to have all sorts of problems.

We've had two strong up weeks, but now...a very significant weekly decline, and once again, the metals are in danger of renewing another major push lower..to take out the June lows.

With the USD starting to strengthen, that had only added to the mid-term downside weakness.

Again, it has to be said, the weakness being seen is especially remarkable, considering the Fed are throwing 1 trillion of new money at the US capital markets each year.
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Mid-term downside targets remain unchanged, with GLD in the 105/95s, and SLV 12/10.