As if deflation worries were not enough, it would appear that every time Gold or Silver look set for a rally the doomsters of Tapering strike home to nip the recovery in the bud – something which we have seen once again this week.
Gold:
Limited bounce off falling July price channel floor from $1,230
Likelihood that the 50 day moving average at $1,284 will cap the price action near term
Possibility that an extended RSI uptrend line will eventually stabilise this market above $1,200
Silver:
Falling price channel from April capped by 200 day moving average at $22.46
Implied target at 2013 price channel floor towards $18.
Rising April RSI support line may eventually slow / reverse recent declines for this market.