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

more of the same....except today, over yesterday, we had both SLV and GLD with lower highs and lower lows. Keep an eye of this follow through tomorrow.

Its also interesting how both ended closer to the lower end... might be a clue that more weakness comes tomorrow.

being patient and giving this time is key, I cant stress that enough.

Good morning folks and happy friday!

WELL.... I would like to mention to things-

1- Remember yesterday I said it was interesting that we saw closes that settled closer to the low of the day... many times when this happens it is because the sellers are ready to carry that action into the next day as we are seeing today.

2- I had mentioned that this chop and narrow range would have a fast move,,, it has and it was to the downside. At this stage, I see more continued downside pressure.

Ok, so lets watch a few things here... and using GLD and SLV as your proxies... look to see if we get heavy volume on the downside. The next thing is,,, does today mean we are setting up for a straight run down to re-test yearly lows or just the start of yet another range on the lower end?

So keep an eye on all of that, and use GLD and SLV as your proxies for you guys at home. This same action of course is playing out in futures market as well... I say this because I know a lot of folks are going to come up with the old "but the futures market isn't the physical market" yada yada yada yada.... dont kid yourself,,, the physical prices are beholden to the futures market,,, this will never change.

@Arksun

Well very good question. IF we see prices close today near the lows, then yes, the probabilities are on the side of more selling coming into Monday.

The other thing confirming this selling we are seeing is this continue path of lower highs and lower lows. That's complete confirmation of the downtrend, that gold and silver remain broken and that sellers have the upper hand.

You;ll notice also, that only 1 attempt was tried at filling the gap on gold, silver never even tried it.

The fact is that heavy volume selling we say couple weeks ago broke the back of gold and silver. Now, what we are looking for is whether the sellers will push this again to a new yearly low, which could trigger yet another flood of selling as stops are hit, OR does this stop by going into a narrow range of chop,,, and then we see another retracement.

I tend to think based on the pattern the probabilities are to seeing another yearly low.

@yup7676

Trying to follow your logic is really quite difficult. I appreciate your posts but haven't you ever heard the phrase "brevity is the soul of wit"? Can you try to keep your posts simple? Stop using twenty words when one will do.

Well the controlled demolition of the price of gold and silver continues unabated
Until the price of PM's is set by the physical market which is the real one and NOT
in the futures market, this banker invented scam called GLD and SLV will continue.
But there is now a bit of light at the end of the tunnel with the ABN amro defaulting
on their gold contracts by telling their customers they'll be settling in cash only.
Then the LBMA did the same thing. That is what is called DEFAULT
(so much for "binding" contracts)
The CRIMEX is being emptied because investors don't trust the bankers to hold their phyzz
in light of both registered and eligible gold stocks have declined in recent months.
So you see my friends, while the bankers hoped their smashing the prices would
discouraged buying PM's for the sake of fiat, the very opposite happened ...
The whole world went into a mad dash to purchase physical PM's and this deceiving
paper derivatives scam is unwinding before our very eyes

lol
You're so funny basebal, you contradict yourself within the same phrase.

Uhhhhh..... I dont even waste time with people who cant grasp that futures contracts are the real deal. Guess what... you dont roll that contract over, you got yourself an order of gold or silver coming up. GLD and SLV, are the real deal also, anyone who doesn't believe it,,, well then they are in the minority and dont know what they are talking about.

Yes, there was panic buying by the uninformed public, who always wrong on their timing. This is why I have been saying, stay away from gold and silver for now. Those people who bought last couple weeks are going to regret it and be a frustrated lot.

There will be much better prices if you really want it. But even then, do not put all your money into gold and silver because theres no telling how long it does absolutely nothing, going forward. Who in their right mind, would commit even a small sum of 100K into PMs that do nothing for 10 years as an example, versus even a steady return of 5% every year? I mean really... think about it....

miggs, you're an avid silverseek/silverdoctors/zerohedge reader right :p

Looks like golds recovered a bit, especially with the exchange rate for GBP. Still looking ahead to lower prices this year, will hold off buying for now.