Since early September, the precious metals sector has sold off once again. Interestingly, the current seasonal period, which includes September, is meant to be one of the stronger times of the year for Gold performance. Yet, it has proved to be a dire disappointment as PMs continue their technical downtrend (charts below).
Chart 1: PMs remain in a downtrend but are trying to establish a higher low
Gold has lost about 12% from early September, while Silver has declined by 18%. Moreover, gold and silver mining sectors are now down 8 weeks in a row. As already discussed in the previous post, Gold is down about 26% in the last 52 weeks (annualised rolling return), while Silver is down about 25% in the same period. An even more significant oversold percentage, Gold miners find themselves down over 55% in the last 12 months.
Technically speaking, this sector is still in a downtrend and clearly defined by the trend-line in the charts above. Having said that, Gold and Silver are trying to establish a first higher low and once again attack the downtrend line in hopes of breaking out on the upside. Until that line is broken, the trend line remains, so keep a close eye on the price...especially as sentiment is now getting rather negative again (chart below and link here)!
Chart 2: Sentiment on Gold by German investors is getting very low! 
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Precious Metals Continue Their Technical Downtrend
Published 10/17/2013, 07:21 AM
Updated 07/09/2023, 06:31 AM
Precious Metals Continue Their Technical Downtrend
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