Choppy day for the metals

The precious markets saw some interesting price swings, partly a result of the latest FOMC announcement..that 'nothing changes' in terms of rates/QE. Gold closed +0.1%, but Silver slipped -0.6%. Near term price formation is getting messy, and inclined to the downside.


SLV'60min

GLD, daily

Summary

Certainly, the FOMC announcement saw a rather severe snap to the upside, but there was renewed weakness in the closing hour - as the SLV hourly chart displays.

The daily charts are indeed a bit of a mess. We have small bull flags - now around 8 days in duration, but they are within larger bear flags, that stretch back to the June lows.

Baring a few daily closes above the old broken support - SLV $20.50, and GLD $131, it would appear the metals are failing..as they have done for the past 10 months.
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Mid-term downside targets remain SLV 12/10, and GLD in the 90s.

Metals on the edge

Gold and Silver opened particularly weak (along with WTIC Oil), and despite closing off their lows, the declines were indicative of a monthly trend that remains severely to the downside. There is very strong resistance at the old broken support, around SLV $20.50


SLV'60min

SLV, daily

Summary

*I was stopped out of SLV early this morning, with the break under the rising channel - as best seen on the hourly chart.

SLV closed -11 cents @ $19.03. Frankly, that is a pretty weak close, and sets up what could be some wild price action on FOMC Wednesday.

Underlying MACD (blue bar histogram) cycle on the daily chart ticked lower for the fifth consecutive day, and is set to go negative cycle in about 2-3 trading days.

Indeed, by the end of this week, baring a clear break above the old support ($20.50), SLV - and GLD, will probably start yet another multi-week down cycle.

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Mid-term downside targets remain SLV 12/10, with GLD in the 90s.

Weak metals

The metals began the week with minor declines, with Gold and Silver falling by 0.24% and 0.85% respectively. Price action is slightly bullish in the immediate term, but prices remain just below what is very strong resistance.


GLD, daily

SLV'60min

Summary

It is increasingly looking like the metals are going to fail in this latest rally, but it remains an extremely borderline situation.

Daily charts are offering a bull flag, with the weekly charts now positive MACD cycle for Gold (but not yet Silver).

Mid-term outlook into 2014 though, still looking for much lower levels.
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A bit of a mess indeed!