Gold and Silver Update (by Springheel Jack)

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Just a quick update to cover the gold and silver charts I didn't have time to post this morning. On gold my second level of support has broken, the possible IHS forming is close to being eliminated as an option and my third level of support is possible declining channel or bull flag support in the 1500 area. There's some good support in the 1500 area and just below. If that fails then we are potentially looking at a fall much lower and I have the next key support levels just over 1300 and in the 1150 area:

On silver the immediate technical setup looks very clear, with the obvious next target at very strong support in the 26.15 area. That is an intersection of strong horizontal support, with the last two lows at 26.15 and a previous one at 26.30, with rising support from the 2008 low. This level is make or break for silver. It is the most likely area to see a reversal back up, and on a break below my next big support level is in the 19.50 – 20 area, with a possible declining channel support target in the 16.50 area:

In summary both gold and silver are now within reach of testing big support levels that I would expect to hold. If they don't hold then the technical outlook for both looks bleak over the next few months.