Metals start the week... weak!

With the US equity and commodity markets weak, the precious metals were not immune. Gold and Silver saw net daily declines of -1.1% and -1.5% respectively. With the FOMC this week, there is likely to be a major move one way or another...weekly/monthly charts would suggest....lower.


GLD, daily

SLV, daily

Summary

All things considered, the past month or two has been just sideways churn for the precious metals. The best the bulls have managed to do is slowly grind Gold to the old support level of GLD 122. With Silver failing to follow Gold above the old support...things aren't looking very strong.

With the bigger weekly/monthly cycles still outright bearish, there is little reason not to believe that current price action is just another large bear flag.

If the Fed continue to taper this week, that will likely not help the metals!

A fifth week higher for Gold

Whilst the equity market saw a rough end to the week, Gold saw continued gains. Gold and Silver closed the week with a net weekly change of  +1.1% and -1.8% respectively. This was the fifth week higher for Gold, and is the most consistent up trend since Aug/Sept 2012.


GLD, weekly

SLV, weekly

Summary

Suffice to say...another week higher for Gold. More importantly, Gold closed just above old broken support on the daily cycle (not shown).

As for the decline in Silver.., well, its more vulnerable to broader market weakness, and Gold is certainly going to benefit more as a 'safe haven' trade.
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There is bigger resistance around GLD 125/130..and indeed...it won't be easy to go much higher than that this spring.
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mid term targets remain..GOLD 1050/950..SILVER 12/10.

Still stuck under old support

Despite a pretty strong set of gains, the precious metals remain stuck under the old - and rather important, broken support. Gold and Silver closed with net daily gains of 2.2% and 1.1% respectively. Near term risk of a breakout, but weekly/monthly charts argue against it.


GLD, daily

SLV, daily

Summary

For those gold bugs getting overly excited out there, I can only refer them (not posted today), the bigger weekly/monthly charts.

Even if the metals stop broadly falling, it is going to take until early 2015 for underlying price momentum to battle back to flat..from what are extremely negative levels.
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mid-term targets remain unchanged...

GOLD 1050/950
SILVER, 12/10