Where Gold and Silver is Headed Over the Next Few Weeks

 

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Our Bearish call on Silver and Gold continues to bear fruit as both have dropped in price in 8 of the last 9 sessions and are down nearly 12% since last Wednesday.  We didn't have to wait for Ben Bernacke to tell the world what the data already showed, that inflation is not rearing its head to the extent that Gold bulls were betting on. Even worse than that are the concerns around possible deflation, something that would create more headwinds for the precious metals. Skeptics citing a stronger U.S. Dollar as a culprit for the decline in the shiny stuff only need to cue up todays tape to see there is more to this slide then the greenback, which was flat while Gold was down nearly 2%.

We spoke about a head scratching move down the 'Rabbit Hole' on Gold and Silver, one that would have folks scrambling to explain the fall from grace. With Gold breaking under multi-year support levels, what will folks be using to rationalize the next downward move. Will it be margin calls? Interest rates going up? A flight from safety? A rise in Margin Requirements by the CME? We can only guess and still have our bear suits on for Silver and Gold.

Option Millionaire Members can read on for our targets for both in the coming months: Here

Profile photo of jimmybobJimmyBob (Scott)has been trading equities for over 15 years, a majority of which were OTC micro-cap stocks. He started trading high risk stock options over the past 7 years, and has proven winning trades in excess of 15,000%.

As one of the Co-Founders of optionmillionaires.com, Scott enjoys sharing his knowledge with other investors through timely blog posts, daily watch lists in the forum, weekly webinars, and helpful advice within the chatroom.

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