Traders were anticipating a breakout, and many are likely disappointed. The dollar is consolidating and now above the long-term moving average. Concerning GDX and GDX.J, things are still pretty dull. Jordan warns that, “Silver is also on the verge of breaking down out of a triangle.”
We’re not entering a new bear market but are likely setting up for a wash-out over the next few months. Perhaps a double bottom with a higher low. We’re moving from a dull market to a potentially dangerous one. Jordan is concerned more about downside in the metals than shares as there is not likely much selling power left in stocks. He warns, “We could potentially see $1040 gold and $13.00 silver.”
The SPDR Gold Trust ETF (GLD) closed at $117.61 on Friday, down $-0.52 (-0.44%). Year-to-date, GLD has declined -4.88%, versus a 5.19% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of The Daily Gold.