Greetings!,

 There is no safe haven for the precious metals markets. Yesterday and today we witnessed the precious metals markets specifically gold and silver trade under tremendous pressure, with gold trading to a new two-month low. Upon the release yesterday of a very positive FOMC statement, we witnessed the precious metals tumble. The Fed reported that the U.S. economy was improving and their expectations are still for low inflation. This statement underlines the unlikely scenario of continued quantitative easing, placing tremendous pressure on gold and silver.

The U.S. dollar, trading higher, hit a new seven-week high, adding more downside pressure to the precious metals markets. With an absence of any real news in the European Union, gold continued its fall for a third day in a row. We have a 61% retracement area in gold at 1626. After breaching the 50% retracement the question remains whether or not gold will make a play for these lower prices closer to $1600 an ounce.

As always, wishing you good trading,

       Today's video 

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Proper Action

GOLD & SILVER :

Awaiting conclusion of "C" wave 

Long gold @ 1700  out @ 1685

Long silver @  33.80 out at 33.25

Yesterday
 yesterday we said : On any signs of prolonged weakness or selling below 

1686 in gold look to lighten or cover positions and take a small loss

MARKET FORECAST

Gary S. Wagner

Gold & Silver: on a technical basis today's video will look at our current Elliott wave count. Our best assessment is that we have entered the "C" wave in gold as it has broken below the 50% retracement area. To date we have given back almost 61% of the gains realized in the rally which that began in December. We will look at our technical indicators for an indication when this final "C" wave has terminated. The bright side of the gold fence is that once we have solid technical confirmation that a bottom has formed and a reversal to the upside is imminent we will look to for a solid third impulse wave, which should take gold well off of these lows back into positive territory.

Gold Chart

 SILVER Chart:

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