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

not much to say here-

1- gold and silver have been down repeatedly, a bounce should be expected.. HOWEVER

2- the market can drive this lower even after many days down, its possible

3- if a bounce happens, do not think its all clear. Probabilities are high that after the bounce, gold and silver continue lower.

4- there will be a lot of noise in the coming weeks. Tune it out, listen to only price. pay attention to what gold and silver do.

5- a lot of trends in the commodities markets have been veryyyy sloppy and ugly. To name a few ugly uptrends- soybeans, sugar, cotton....

I repeat- up trends can be ugly and we can say silver and gold are in very ugly up trends. However, just because they take a beating doesn't mean its done. The main point is that we have a TON of overhead resistance, expressed in price, where sellers are abundant and will step in.

If you are dip buying, be careful. Some funds, as we said last week, like to buy around the 200 MA. However, MAs are not something set in stone, they are only reference points. its possible for gold and silver to slice past these.

The good thing is that the more selling happens, the more violent the moves down, the better. Until we break this uptrend, gold and silver are still OK.

IF this selling overwhelms the down trend, well, then one walk's away from silver and gold. But until then, we patiently wait and watch price.

the way the miners are acting after multiple days down makes me think another leg lower is coming, we'll see, they really cant hold on to any gains.

Like I said yesterday, miners are very weak. No real bounce even after repeated days of moving lower.

They are all now starting to form ranges, riding on the lower end and by know you should know the deal. Once a range gets broken, that is the direction that asset is moving.

with such weak price action from miners and the PMs, it is hard to think they arent getting ready to break lower still.

@kg5

we still remain in an uptrend despite breaking the range lower from back in October.

To really put us, without a doubt, into a downtrend, as in silver, we would have to see 13.72 the yearly low. As you can see, we are no where close to that. There are going to be areas where silver and gold will find support, this will take time tho, this "price discovery" is, like everything else in financial assets, a process.

Often what happens are assets in yearly trends run into a time period where they pull back or correct. These time periods, especially in commodities, can very violent and sloppy.

Right now, this whole uptrend in gold and silver have been very sloppy. It will take time to find the level where gold and silver finally hold. It is clear tho that silver and gold are not there yet.

Short term charts for gold and silver look like absolute death lol. Looking at gold as an example, of this 1240ish low area doesn't hold, probabilities are good it sees 1200s, as an example.

Patience, as always is key. A point I also repeat over and over is the fact that we have a TON of over head supply. There are many levels where sellers are present and will want to jump off. This goes back to our old saying that "price as memory".

Eventually, gold and silver will find an area in price that holds. Again, I dont see the 1250s holding for gold tho, based on price. I say this based on the fact that gold cannot manage a decent bounce or hold a bounce. The sellers have the upper hand until they are exhausted. As an example, if 1243.20 gives way this week, lower prices in gold should be expected.

Silver, if 17.11 gives way, expect lower prices.

SO we need to watch and see how price reacts in those areas for now. tho again, in my opinion and I could be totally wrong, which I am OK with, I dont think those will hold.

Uptrends come in various forms. Sometimes they are nice and steady grinders. Other times they move higher but manage to re-test an area where they came from. Sometimes, they can hit yearly highs and then pull back with the most hardest pull backs, come into areas where yearly lows are and then come back to their yearly highs, all in less than a year.

Think of oil, where yearly lows were hit early this year and now we have oil within striking distance of yearly highs. That is some wild wild price action in an uptrend. I mean how crazy is that? Oil is breaking down in February, hitting yearly lows, now we are going into the end of the year with oil at yearly highs LOL.

These wild violent swings can make holding commodities very tough.

The Fibonnicci(mis-spelled, I'm sure) guru, Avi states once the new bottom is in(soon), all heck should happen back up. Now, it doesn't take a 5th grader to make a statement like that, but, I'll take any positive news I can get at this point. At least things didn't tank today, with the stupid "Minutes" out from da Feds. NOISE...NOISE...tired of noise...I want to hear a Symphony. There WAS a decent amount of green on my screens today, but, I own more explorers and OTC miners than most....

I deleted it...you know, Avi Gilbert..you already have his info...sorry bout that Montana!

^^^^ I agree with AGcoinAU.....With prices being down this much since Brexit I believe it's a good time to purchase abit of physical....

"We're willing to tolerate a bit of an overshoot in inflation over the course of the next few years in order to avoid [higher joblessness], to cushion the blow and make sure the economy can adjust as well as possible," Mr Carney said...
Mr Carney said the Bank was not "indifferent to the level of sterling", but added: "Our job is not to target the exchange rate, our job is to target inflation".
Mr Carney also defended the Bank's independence, insisting that policymakers would not "take instruction" from politicians on how to do their jobs.

"The objectives are what are set by the politicians, the policies are done by technocrats," he said. "We are not going to take instruction on our policies from the political side."--The Telegraph, remarks from Mark Carney BOE head

We have had a dis-inflationary period from 1996 through present and PM miners have suffered accordingly. What happens to the ratio if the bankstas get their wish, ie. inflation (regardless of what the dog and pony show politicians want).

http://www.macrotrends.net/1439/xau-to-gold-ratio

For the PM miners long live technocrats?-LOL