Gold and Silver Meet Resistance
Conforming to the statistical odds, gold and silver have both met strong resistance levels. Gold has made several attempts at the 1260 level and been subsequently pushed back down to the 1230 area.
Silver has a much more developed band of resistance between 19 and 21 that stretches back to its 2008 highs. At this point the ceiling above silver seems impenetrable, however this 2 year band will fuel an explosive move when the level is finally pierced.
Both metals are facing strong head winds, that make their performance much more impressive when taken into consideration. Global liquidity is drying up rapidly, and equities are dragging everything lower as money managers sell assets across the board. Historically, the next 3 months are the weakest for precious metals, especially silver. The fact that both metals are threatening their long term resistance levels at such a weak period is a precursor to the next up leg that will likely begin in the fall. In the interim, the precious metals will likely correct low enough to frustrate the bulls wanting a higher price, and shallow enough to frustrate those hoping to get in at lower prices.
However, such frustrations with gold and silver are surely better than what general equities investors will endure.