Metals stuck under broken support

The precious metals continue to see choppy price action, but more importantly, the metals show little sign of the strength necessary to break back above the old broken support. Gold and Silver closed the day lower by -0.6% and -1.5% respectively.


GLD, daily

SLV, daily

Summary

Nothing has changed. Every day of side ways price chop is just helping to reset the daily MACD cycle, and within 3-5 days, metals will be at risk again of breaking the June lows.

Mid term targets remain: Gold, 1050/950, with Silver 12/10 - although the latter might be propped up if the broader economy holds together into mid 2015.

Interesting weekly gains

The precious metals are still battling to hold above the June 2013 lows. Across the week, Gold and Silver saw net weekly gains of 1.8% and 0.8% respectively. Near term outlook is very uncertain, but mid-term downside remains the broader trend.


GLD, weekly

SLV, weekly

Summary

Suffice to say..it remains a marginal situation. There is moderate chance of a multi-month rally into the early summer, but I find it implausible that Gold won't at least briefly test the big $1000 threshold at some point this year..or early 2015.

If Gold does eventually decline to around $1000, this has very bearish implications for the mining stocks.

A bounce to start the year

The precious metals are desperately trying to hold above the June lows, and started the year with a marginally interesting bounce. Gold and Silver settled with daily gains of 1.7% and 2.7% respectively. Near term trend remains weak though.


GLD, daily

SLV, daily

Summary

Baring a few daily closes above GLD 122, today's bounce is just that..another bounce..of which we have seen a hundred or so, since the peak in spring 2011.

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spot metal targets remain: GOLD 1050/950, SILVER, 12/10.