The pattern reversed on us. If the decline continues, the market might head toward the 18-week moving average of closes, which is still in play. For the week, you're up 0.01%.
The technical indicators are bearish. Buy-stop losses will be triggered by very short-term traders if the falling trend continues in gold, silver, and copper.
You can see how the gold market has been trying to come back to that 18-week average of closes. That number is around the $2290 level. The market isn't that encouraging.
Gold ETF buying in China is driven by weak equities, a weakening local currency, and decreasing bond yields. Chinese gold ETF holdings are now at a record high.
A break above $2,400 would please the bulls, but we must achieve this before dropping below $2,300. The current malaise could persist into July, even if $2,300 isn't broken.
Gold's breakout rally led to $50 silver and $3,000 gold targets...I think those targets are going to be met. But really, we don't want them to be met right now.
Crash or sell-off will be there if and only if key short-term resistances are not broken by the end of the second week of July. This is for precious metals and base metals.
The charts for gold and silver continue to look very positive and this looks like a good point to buy the sector after the correction of the past month.
