Gold Price & Silver Price Update

Gold sector cycle is down as of 2/06.

Gold sector

$HUI is on a long term sell signal since March 2012.

Long term signals can last for months and years and are more suitable for the long term investors.

$HUI is on a short term sell signal since early Feb.

Short term signals can last for days and weeks and are more suitable for traders.

$HUI bounced from support but until resistance is broken, the trend remains down.

Summary

Gold sector is on major sell signal.

Cycle is down.

COT data N/A at time of update, but favorable for a bounce from previous update.

Silver sector

Silver is on a long term sell signal since Dec 2011.

Long term signals can last for months and years and are more suitable for long term investors.

SLV – is on short term buy signal.

Short term signals can last for days and weeks and are more suitable for traders.

Summary

Silver is on a long term sell signal and investors should be in cash or short.

SLV is on a short term buy signal and traders can play for a bounce if risks are manageable.

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Courtesy of jack Chan at Simply Profits.