Silver and gold have sold off recently but still hover quite a bit above their 2013 lows. Investors are wondering if the metal should be bought as the Federal Reserve signals no stop to its bond-buying program.
Neither (Chart) Looks Good
The charts probably give us the most unbiased view of where these metals are going. Neither chart looks healthy. A look at SPDR Gold Trust (GLD) and iShares Silver Trust (SLV) shows the ugly reality. Recently both charts have broken to the downside, below major trend-line support. The 2013 lows are all but a lock at this point and gold still has a chance over the next year to hit $1,000 an ounce.
Note the two charts below
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com