Gold Price & Silver Price Updates

Prices need to rally and stay above current level or we could see another sharp drop.

Gold sector cycle is down as of 5/16

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.

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

Gold bounced sharply from the divergence but stocks are lagging, therefore, we may see another divergence which could be bearish unless negated promptly.

Summary

Gold sector is on major sell signal.

Cycle is down.

Prices need to rally and stay above current level or we could see another sharp drop.

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 sell 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.

COT data reveals that speculation is close to levels of previous bottoms.

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Disclosure

We do not offer predictions or forecasts for the markets. What you see here is our simple trading model which provides us the signals and set ups to be either long, short, or in cash at any given time. Entry points and stops are provided in real time to subscribers, therefore, this update may not reflect our current positions in the markets. Trade at your own discretion.