Water-Falling Precious Metal Markets

A very strong week for markets with some heavyweight stock reporting great earnings and surging, taking the Nasdaq nicely higher, although the Russell2000 and S&P500 are lagging and may find some resistance.

We are seeing relatively overbought readings…and at resistance -- so some rest and retracement looks due in the week ahead.  However, we do have some more large earnings numbers coming up -- and that should be very interesting and perhaps profitable.

Gold continues to be weak and looking to be at the start of a waterfall decline, which should end up near the $1,000 level by summer’s end.

Gold lost 2.64% this past week and is breaking below support now on increasing volume. This is the break I’ve been looking for that should take us to the ultimate low area around $1,000 over the next couple of months.

There really isn’t any support between here and the $1,000 level, but that doesn’t mean it will be a straight shot to the major support level that needs to be tested before I can see the dominant trend changing from down.

There is some support at the $1,115 level, so I’d look for a break to there---and then a move back up to $1,150 as gold sets up for another break lower.

Silver lost a large 4.88% this past week and is making its way towards the $10 support area. Volume isn’t huge on this decline so far but the trend remains lower and support around $10 must be hit before the trend can change back to up.

It doesn’t really matter what story someone tells you about the metals, the fact is they have been falling for a long time and are not done yet.

Platinum lost 3.93% this past week and has already broken major support at $1,000. The next major support level is $800…and that looks to be in the cards to coincide with the ultimate low coming in gold and silver later this year in all likelihood.

Palladium lost a sizeable 5.80% over that past week with stocks soaring. Nobody wants the metals. And until that changes, neither do I. But I do want leading stocks and biotech stocks since that is where the money is going.

Palladium has some strong support at $590, then $555 and $500 -- and I don’t see any reason why we won’t see a $500 print in palladium by the end of this year, most likely by the end of summer along with gold and silver.

Under $500 is $390 for support and only time will tell, but I have a feeling we may spike to $390, since that is the strongest support level and where the last run began way back in 2009.

Nothing has changed. Stocks remain in a bull market and will for years to come but they do not go straight up until the blow-off top phase, while precious metals remains solidly pointed lower.

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