What Happens To Gold And Silver Next? Look Out Below?

Nine days down for gold now.... talk about selling.

Silver has yet to break its yearly for now. Both metals are working on ending their sessions near the low of the day.

doesn't seem like both are done going down for now despite the fact that they have seen a lot of selling.

gold and silver breaking down in the overnight futures market session.

The numbers you are looking for are-

a- a break of 1080 on gold will bring in lower prices and downtrend continues to be in full effect.

b- a break of 14.15 on silver brings in lower prices and puts silver on a par with gold for making fresh yearly lows.

as always dont be in a rush to buy, prices will and continue to drop so dont fall for the gimmicks of dealers or worrying that you are going to miss a "sale".

Thus far today-

Gold breaks 1080, opening the door for lower prices as we are seeing.

Silver has broken yesterdays low of 14.62 but hasnt yet hit its yearly low tho its getting close. Hitting the yearly low should bring more selling in silver and therefore much lower prices.

@cascade

That is a hard question to answer seeing that we have no clear proof that silver has stopped going down.

I dont think it goes to zero however before being a buyer or least finding a floor, I need to see it stop making yearly lows.

For that reason, we still are not in a territory where we can say that an area is worth buying. While it may sound crazy after seeing years of a downtrend, there is nothing to say that silver, as an example, slides lower than 8 dollars an ounce.

Thus far we have been presented with overwhelming evidence that gold and silver are in a slow motion train wreck, firmly in a downtrend. That downtrend has been full of boring sideways chop with strong counter trend moves that fall short and fail exactly at the point where they need to hold.

Seeing now stretched silver and gold are currently with constant selling it would be no surprise to see yet another counter trend move in due time.

As an observation, I again repeat what I have been saying- gold has made yearly lows but silver hasnt... yet. Does this mean anything? What are the implications? If silver hits its yearly lows, much lower prices are coming. Does this mean much lower prices are on tap for gold and silver from here?

I would be loath to say "yea 9 bucks seems low enough to buy" without definitive evidence that a floor has been reached in silver. Experience dictates to allow the trend to run its course and remain patient. When silver is done going down it will give many many clues. Thus far, all the evidence we have presented to us by the price action is silver and gold remain in strong downtrends that arent reversing course anytime soon.

I am away for a bit here but let me just make note of a few things-

Both silver and gold spent the last week in a range. It would appear that perhaps this week we see yet another leg lower.

Here are the numbers to keep an eye out for this week, these prices would trigger another leg lower for both silver and gold:

Silver- a break of 14.33

Gold- a break of 1072.30

Why you might ask are these the key numbers. With gold, that is the current yearly low and yearly lows often result in much lower yearly lows, hence the downtrend. In regards to silver, that is the low for last week. Breaching 14.33 would result in much lower prices as price is probing lower and also signifies that the yearly low for silver is getting closer and closer... and as we have discussed many times, yearly lows beget even lower yearly lows.

The momentum is strong and it is downward so prices are just following the path of least resistance which I again repeat, is down.

@domain555

I am very curious to see how price reacts if/when silver breaks the yearly low.

In my experience, as an example, 20 gets broken, next stop roughly around 15, 15 gets broken, 10 is next on tap.

Guess we are going to find out eventually what happens but the probabilities are stacked in much lower prices for gold and silver.

It will be nice once this downtrend is done, I am holding out any major purchases and its crimping my collecting style lol