Little changed from Monday’s update. Metals and Miners continue to whipsaw in either direction. Nevertheless, our primary analysis calls for a breakdown, likely before the end of next week. Gold would have to recapture $1,300 to prevent a November slump.
A breakdown in gold would summon a retest of support around $1,200. I have a symmetrical basing objective supporting $1,180. I’ll change the color codes and provide target boxes if/when gold decisively breaks the October low ($1,262).
US DOLLAR- A daily close above 95.00 should trigger a secondary advance towards the rebound target.
GOLD- I thought prices would break the October low early this week, they didn’t. Instead, prices continue sideways. The longer it takes to break the October low, the more significant the breakdown will become. The analysis supports a decline below $1,262.
SILVER- There is a subtle trendline forming in silver. If broken, prices could begin to drop sharply.
GDX- The trend is unclear. GDX would have to close above $23.00 (yesterday’s high) to prolong the rebound.
GDXJ- Juniors would have to close above $32.99 to break free from the bearish flag pattern.
WTIC- Prices broke above significant resistance. We could see a test of $60.00 before a correction takes hold.
ERX- There is resistance between $32.50 and $34.00. I’ll sell the remainder of my position if prices show signs of topping.
