Powerful net monthly gains

February was arguably the most important month for the precious metals since the decisive break (April 2013) of the rising trend that stretched back a full decade. Gold and Silver saw net monthly gains of $116.00 (10.4%) @ $1234.40, and $0.64 (4.5%) @ $14.90 respectively. Near term outlook threatens a little cooling, before viable hyper upside this spring.


Gold, monthly

Silver, monthly

Summary

Suffice to add, we have clear breaks of the declining trend that stretches back to the 2011 highs

The US/world capital markets remain increasingly twitchy, and there is no doubt the precious metals are regularly catching a strong 'fear-bid'.

Near term threatens Gold $1180 or so... but from there... first upside target is the $1300 threshold.

Things only get 'real interesting' if Gold can soar to $1500 by late summer.

*whether Gold $1300.. or higher, the implications are very bullish for the related mining stocks.

Metals continue to cool

With the broader US capital market increasingly confident, the precious metals are losing their fear bid, with Gold and Silver seeing net weekly declines of -0.5% and -4.2% respectively. Near term outlook offers further cooling into mid March, but from there.. things will likely resume powerfully higher.


GLD, weekly

SLV, weekly

Summary

Suffice to add, a few weeks of cooling is very natural, having seen a key break above the declining downward trend.

Near term downside in Gold to $1180/70.. equating GLD 113/112.

Broader upside into April/May... Gold $1300, equating to GLD 125
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*I will look to be long gold - via GLD, in mid March... and broadly hold long into early summer.

Precious metals cooling

With US/world capital markets seeing renewed confidence, the precious metals lost some of their fear-bid, and have started to retrace. Gold and Silver saw net weekly declines of -0.7% and -2.4% respectively. Near term outlook offers further cooling for a few weeks, before viable hyper upside across the spring.


GLD, weekly2

SLV, weekly

Summary

Suffice to add, having climbed for four consecutive weeks, a week or two of cooling is to be considered rather natural.

Regardless of any further near term cooling, Gold looks set for the $1300 threshold this spring. Whether that is just another tease to the gold bugs... difficult to say, although the mid-term bearish trend has unquestionably been broken.