Gold outlook remains negative [Video]

Gold

Gold daily chart looks negative at this stage & we remain in a 4-month bear trend...as I wrote this week.

However, we shot higher on a signifi cantly weaker than expected CPI release yesterday.

Even then we made a high for the day exactly at the 6-week descending trend line going back to 29 May, at 4100 & we have dropped over $70 over night.

We have reversed to 4070/4065 & 4050/4045 as we retest last week's low at 4025/4020.

I do not see this as a support level so a break below here would not surprise me, targeting 4005/4000.

Although this might be a psychological round number, again I do not see it as support & if we continue lower as is likely, look for 3988/84 then 3976/72.

A sell opportunity at 4075/4085 & shorts need stops above 4095.

Just be aware that a break higher is a buy signal for today targeting 4100, 4120 & even 4135 is possible.

Silver

Silver beat first resistance at 5760/90 with shorts stopped above 5840, hitting my next target & strong resistance at 5900/5940.

Shorts here worked perfectly as we reversed from 5965 to minor support at 5880/50.

Holding below here today in the bear trend can target 5760/5730 & even 5660/40 before a retest of the June low at 5590/5560.

A break below here is certainly possible in the bear trend, almost expected!

Next target is 5470/5430 for profit-taking on shorts.

Gains are likely to be limited with first resistance at 5970/6010 & shorts need stops above 6080.

Just be aware that a break higher is a buy signal targeting 6170/80 & 6220/30, perhaps as far as 6290.