Both metals are going lower over the coming weeks as there is little from a cyclic study perspective that will induce any of the big guys to buy in the near term - except Shorts taking some occasional profits. Gold closed at $1,143 at the highs of the $1,135 Gravity well, so will fall back there soon IMO, and Silver closed under its range boundary of $15.63, and is arguably behind Gold now and really should have a $14 handle by my inspection, but the AUDUSD is in a similar position and is trailing the EURUSD on the way down as well which may be holding both AUD and Silver up prematurely. The EUR closed right on its range trade boundary and is postured weaker towards 1.23, and the AUD, closing at 8585 on or just under its last value point above its range trade range boundary of 8510 is sure to head lower (actually its already down 33 pips on its way there now as I write.). This will also act to drag gold down. No point talking about the retail channel being cleaned out with low prices and this being the catalyst for an immediate reversal - because it wont, and it wont affect the prices here on the way down simply because these markets are derivative markets, not physical markets, and the Physical delivery period is December, so dont expect any sustainable rally until we approach that month. Peoples, it looks like Uncle Sam and the Saudis have conspired to clean Putins clock like they did to Russia in the early 90s when they last engineered the Russian financial and political collapse. Interesting times. Gold backed trade settlement anyone? SO as a wrap up - given there is so much time available before the cyclic studies turn up later in November, I think everyone should brace themselves for the real possibility of a 10 Handle in Gold and 14 Handle in Silver very soon.
Posted on: Thu, 06 Nov 2014 01:09:43 +0000
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