Silver weakness is a negative sign for Gold.

Dollar Index trend reversal is on.
August 2, 2013
Gold Elliott wave analysis
August 6, 2013

Another way to look on what to expect next for the price movements of Gold, we take a close look at a correlated metal : SILVER. The recent upward move in Silver from 18,16 to 20,60 is clearly an overlapping corrective move. There is no clear upward move and therefore we remain neutral to bearish as we expect the downtrend to resume soon. The sequence of and higher lows may be supporting short-term up trend, but the pattern of the rise is corrective.

silver

Trend remains down and despite the bullish sequence of higher highs and higher lows we expect prices to break down soon. Resistance is found at 20.60 and 21. Short term support is found at the latest low at 19.15. Another higher high towards 21 is very possible because there is no sign of a strong downward impulsive move.

silverlongterm

Trend both long and intermediate term remain down. The short-term upward trend could push prices towards 21 but I believe the decline in prices and the new low below 18 should be expected in August. Although Gold has managed to make a big upward move from 1180 to 1350, Silver lagged and we believe that it is possible for Gold to follow downwards. Concluding we are bearish metals and specially GOLD.

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Alexandros Yfantis
Alexandros Yfantis
Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.