by Jordan Roy-Byrne, Gold Seek:
Gold and Silver are going to close down for the third consecutive day and the third consecutive week. As we pen this on Friday, Gold bounced from $1162/oz and could close near $1170/oz while Silver traded below $16/oz and may close at $16/oz right on the dot. Both metals are now dangerously close to their final weekly supports and therefore one step closer to an important technical breakdown.
The weekly candle chart for both metals is shown below. Today’s action has yet to be updated. Nevertheless, we can see the clear important weekly support for both metals. For Gold it’s roughly $1150 and for Silver it’s $15.50 to $15.70. The failure of the metals to rally out of their 7-month long bases bodes bearish for the weeks ahead. Furthermore, let’s not forget the relatively high net speculative positions seen in both markets. The COTs will be updated by the time you read this but odds are there are plenty of speculators left to drive the metals to a final breakdown.
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