I wanted to update as prices are breaking short-term downtrend lines suggesting a temporary or common cycle low may be in for precious metals. IF this is the case prices will rise for a few days, maybe until Wednesday, perhaps around the time the Fed minutes are released, then things should roll over.
Also, I wanted to point out a situation I’ve been watching in the weekly Gold chart concerning significant underlying weakness. (last chart)
Gold prices are breaking the short-term trendline, therefore, suggesting $1,258.30 may be a temporary or “common” cycle low. Prices will probably rise for a few days and then roll over to the June target area.
Same situation in silver, prices will rally a few days and then they should roll over and drop to the June low.
There is a big problem with the weekly On Balance Volume (OBV) in Gold. Prices rallied sharply, but the OBV didn’t move higher as prices made their run to $1,306. The OBV has now rolled over and is threatening to make a new low, a major non-confirmation. OBV is not confirming this move in gold, and there is no logical reason prices haven’t dropped.
