"The take-away this week is that the bulls have shown resilience," Wyckoff says. To him, it would appear that a bottom is in -- or close to being in -- with the bulls showing strength near the $1,321 level. Wyckoff sees major resistance at around $1,400.
Turning to the fundamentals, Malandrino points out that 2013 has mostly been a corrective year for gold, as opposed to 2012, when it staged monumental returns. Malandrino attributes much of this to speculators playing the Gold ETF (GLD): But they "were completely shell-shocked when it came back in hard, not really understanding the fundamentals of the commodity itself."
Wyckoff agreed with Malandrino's assessment, adding, "we've certainly seen a solid downward price correction this year," and "we've done near-term and longer-term technical damage." He says that gold will be OK, though, if it can defend that April low of $1,321.Silver, on the hand, tends to trade as a raw commodity at times, rather than a safe haven, like gold. Wyckoff noted that silver can experience additional downward pressure because of this. When asked about other hard metals and their price action, Wyckoff looked at copper, which has seen recent downside pressure due to its heavy exposure to commercial use and weak Chinese economic numbers. "Right now, technically, the copper market bulls and bears are on a leveled playing field," he concludes. -- Written by Bret Kenwell in New York.