Gold and Silver crumble............

Gold and Silver had to come down like this and there is still more to come. The big question is where do we se Gold and Silver in the near to medium term? On what basis do we give our verdict: Fundamental; Technical; Geo Political; or even Astrological/Astronomical ? The best answer is to combine all these forces and see what results we get in general for the metal market as a whole.

Gold has broken key technicals and is bound further south to maybe0 $520.00 if we see a close again below $570.00 spot today. Fundamentally also Gold is not that strong. We shall not say it is weak but not that strong either because right now we see robust demand from India ; Middleeast and even South East asia but this is stocking up as prices are considered too low here and they expect them to go up from here but what if we see a further slide. Then I think the demand will totally come down. As per chinese astrology also this is a year of water and metals tend to sink in water. Geo political situations should not deliver any spike in the near term at least till the U.S. elections.Above all this Gold is a measure of the US economy and they have to project a stable U.S. state and for that Gold has to be down.

Silver on the other had is fundamentally very strong and technically also not that weak either. But if Gold falls further we could see Silver to a low of $9.40-$9.50 in the near term. All in all it should follow Gold to a major extent. We also have unconfirmed reports of certain Hedge Funds suffering losses on silver and the reports if true could bring down silver drastically.

The most important factor for the bearishness is the mind game the bigger players are playing with the small individual players/investors/speculators. The retail investor is still long and has still not squared their positions coz they see Gold to a maximum low of $550.00 now and therein lies the catch. Once it breaks those levells sharply the retail investor shll exit and maybe even sell extra expecting major losses from there. Again a Death Knell for them. This is a trap very carefully laid out by the sharks of this trade for the jelly fish. So watch your frien in the bullion trade is doing.

Tip: sell on extreme spikes.