On Friday gold dropped -9.60 to 1231.50 on moderately heavy volume, while silver was down -0.09 on moderate volume. After breaking down early in asia, silver rebounded and traded sideways closing down only modestly. Gold just sold off all day long, closing near the low.
On Friday mining shares dropped again, with GDX off -1.61% on moderately heavy volume, while GDXJ was down -2.60% also on moderately heavy volume. GDXJ seems to be doing somewhat better than GDX this week, and miners overall seem to be doing better than gold – minus the one bad day on Monday.
For the week gold was down -37.80 [-2.98%], silver dropped -0.60 [-3.12%], GDX down -4.75%, and GDXJ off -4.61%. The gold/silver ratio was up a very modest 0.10 to 66.14. Gold, silver, and the senior miners have all broken their various support levels and are more or less in free fall. The only hint of good news comes from the junior miners, which have been tracking sideways over the past four days rather than simply plummeting.
Gold breaking support at 1240 was a big deal from a chart perspective. An uptrend is characterized by a sequence of higher highs, and higher lows. Once that “higher low” is broken (1240 for gold), the uptrend is over. This will result in more selling pressure for gold. At least according to charting rules, gold is now trading in a range – and looking at the chart, the top part of the range is steadily declining…which forms a descending triangle, which are typically bearish and often result in a break lower.
This post was published at PeakProsperity on Sat, Sep 13, 2014 –.
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