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| Gold Price |
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| Silver Price |
Thanks to stockcharts free charting software, I was able to come up with the two charts above.
As we can see, gold and silver are still in correction phase with no intention of lightening up. Williams %R, RSI, Stochastics and even the MACD and OBV (which I wasn't able to plot as the software only allows 3 indicators at a time) are all down and do not look to be turning up soon. Expect more selling in the coming days (maybe another week or two), possibly driving prices past its next support at US$1320 for gold, US$25 for silver. Gold could see price drop to its 200 day moving average if this occurs, with silver maybe heading to its next support at $23.50 thereabouts.
There is a lot of fear in the market as with any massive selldowns. However, the fundamentals has not changed. Printing money is still occurring, debts have not been resolved, inflation is kicking in, currency wars, yadayadayada. The list goes on. Anyone looking to be invested, would be wise to wait for the indicators to turn up proper. Catching a falling knife is no fun at all. In the event that prices do turn up, I expect silver to perform a lot better than gold as silver still has a long way to go to break its all-time high.
Best of luck,
~K
