The recent bounce attempts in the precious metals have been weak. And even though shorts were tossed and turned since April’s crash in the precious metals, the downside risks to another leg lower in an established downtrend are always high.
Updating the gold ETF weekly chart, first below, look at the $118-$123 zone below as the next logical reference point for some support to hit. I would resist picking a bottom until then, at least. Even then, we are dealing with strong downside momentum which should be respected and therefore stops kept in place.
On the silver ETF weekly, second below, it looks like the $18 primary breakout level from 2010 is still acting like a price magnet.
Both of those levels are likely places where shorts cover some gains. But that need not mean they are great buy points. Keeping it simple with the metals and stocks like Apple is often best–They are in strong downtrends until proven otherwise.
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