Weekly Precious Metals Recap with Mike Seery GLD SLV

The precious metals fell out of bed this week especially gold which finished down for the 6th consecutive day trading far below its 100 day moving average all due to the fact that the U.S dollar hit another contract high today trading up nearly 70 points again today as investors are fleeing out of gold and taking that money and placing it in the U.S dollar and the S&P 500 which is hitting another record high again today.

Gold futures for the June contract settled last Friday at 1,436 finishing down about $70 for the week trading at 1,362 hitting a 2 year low with a possible retest of 1,321 which was hit on April 16th of this year. Investors see no reason to own gold at this point in time when you can buy the stock market which seems to go up every single day, however the real story is large hedge funds including George Soros which have been liquidating their gold positions in recent weeks and that is also putting pressure as investors are taking money out of the ETF gold market.

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Silver futures for the July contract were down another $.38 at 22.36 an ounce trading below its 20 day moving average and is trading $6 below its 100 day moving average which tells you this trend is very strong to the downside and if gold continues to go down its going to be difficult for silver to rally. Silver looks bearish here in short term after settling last Friday at 23.65 finishing down about $1.00 for the week also hitting 2 ½ year lows. The next major support in silver which was also hit on April 16th of this year is at $21 and if that level is broken you could possibly see silver heading down to the 18/$19 level especially if gold continues to fall out of bed.

Copper futures were a different story finishing up 300 points today in the July contract after settling last week at 3.35 a pound down slightly for the week, however its following the S&P and the housing market more than silver and gold at this point as investors see no reason to own gold because it actually has no real commercial usage but copper is used in housing and many other products with improving economies around the world copper demand should increase but at this point in time I would avoid copper because it does not have a trend while silver and gold have a trend to the downside so if you’re looking to get short this market I recommend selling silver and gold in place a stop above the 10 day high therefore minimizing your risk in case the trend does change.

Trend: Lower  – Chart structure solid in gold and silver 


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