Greetings!,

Risk On - Risk Off

Under moderate downside pressure the precious metals markets, specifically gold and silver, traded significantly lower. Gold, currently trading well off its intraday low of 1642, is back above 1650, off just under $13 on the day.  

Silver also has felt significant downside pressure trading off almost 2-1/2 percentage points on the day, down over $.75.  

A weakening Chinese economy and lower crude oil prices were factors influencing the precious metals markets. However, it is investors unwinding risk on trades that I believe was the most significant factor forcing today's lower price.

As I mentioned yesterday, although we find good support in gold and silver, specifically gold at 1634, the upside momentum is limited. The solidly higher U.S. dollar also added fuel to the downside fire. With relatively little news out of the European Union and current reports about a downturn in the Chinese economy I expect sideways to moderately lower pricing until new fundamental news emerges.

As always, wishing you good trading,

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Proper Action

 GOLD & SILVER :

 Maintain long in gold @ 1658 stop below 1625

Silver - only a close above $33 would 

trigger buy signal. Until then, we sideline

MARKET FORECAST

Gary S. Wagner

Gold & Silver: if in fact we have ended our corrective wave two vis-à-vis our Elliott wave count, this is the most bland impulse wave I have seen in a long time in the precious metals markets, specifically gold. It seems rather than any upside momentum we are experiencing downside pressure and sideways trading activity. Our strategy at this point - upon confirmation of very solid support down at the lows - will be to dollar cost average our gold positions when we are fortunate enough to see a dip back down in those areas. I will keep you well informed.    

Gold Chart

 SILVER Chart:

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