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

and platinum. Both face a supply crunch which could bring prices higher.

http://www.caseyresearch.com/articl...mental-shift

This has really been a slow slog here. When at times it appears gold and silver are ready to gain steam and enter that gap from 4/15 they are quickly pushed back hard.

When it appears they are ready to take a run for that next run lower, when the price action looks weak and ready to dump, it bounces back up hard.

We have seen currency moves give a boost to gold, then watch it fizzle the next day. Even as world markets begin a correction and noise starts to emanate and pundits talk about fear, gold and silver cannot manage to get a decent bounce.

To be clear, gold and silver remain in a downtrend. The price action continues one of slow stair stepping down. However, this sort of chop and narrow range bound price movements lends itself to allowing fatigue to set in, with many feeling that this range will never be broke, that prices cannot fall any further or that prices are now stable. Others might feel that since prices have sliced lower that at any minute, therefore a big plunge will occur.

The best thing to do is sit tight and wait. Be patient. IF you are planning on buying physical and are a dip buyer, which I don't think is a good idea as you all know, you want to first see another bout of heavy selling before stepping in to nibble. Do not allow yourself to lose patience and pick up silver or gold while in this range.

At this stage there is no reason to worry that prices are going to skyrocket higher, that you will be caught off guard with a sudden price spike. If you haven't bought yet, you haven't lost anything and are in the BEST of positions.


Lets look at our proxies

GLD- higher high, higher low

SLV- higher higher, higher low

Again, as I always say, this range will eventually be broken in one way or another. Be patient.

On NPR report: Inflation increased over 1% (mainly contributed by food & gas/fuel).... so may be this's the reason why PM is in the green, not red.

Do we get fireworks tomorrow? That's the question going around in regards to silver and gold. Tomorrows FOMC minutes might spark something, so be sure to observe the reaction to the minutes and NOT what is said.

From a pure price outlook, both silver and gold once again look like they are ready to take a big dive down. We have had these similar moments, however in the past, only to see both rebound. Therefore, time is key here and only by time will this move be resolved. Lets look at our proxies

GLD- lower high, lower low

Prices are in a clear downtrend and they have continued to tighten their range, moving closer to yearly lows. As I have said before, depending on which way this snaps, which all probabilities put it to the downside, it will be fast and very explosive.

Remember, FOMC meetings minutes released tomorrow, watch the REACTION by the markets, which is more important over what is said by the Fed.

@Baseball

Based on some of the high beta market leaders recent price action this week and today I think the probabilities are high we rally on the Fed news today. GOOG and AMZN would not be nearing all time highs if the market was worried about what the Fed says today.

Now, gold and silver, that's another story. Should be interesting to see what happens.

WELL-

20+ minutes into the Feds release of the FOMC minutes, couple points-

1- Dollar strong, gold and silver flat,,, I find this very interesting

2- Again, the reaction was ho hum with gold and silver to the minutes thus far. This could change but still interesting to note.

more later

Pretty much all of them tank whenever the fed opens it mouth, when Obama speaks about it we get massive drops. I'm pretty sure at this point I could do quite well just selling the day before and buying back after speeches.