Precious Metals Continue to Show Weakness -- With One Exception
NEW YORK (TheStreet) -- U.S. markets and leading stocks continue to show strong and positive action, mostly early in the week. It really has been a great August, and that is rare, but it just shows that you must always pay attention to things and can't rely wholly on historical or past norms.
Does this mean the usually strong fall period will be weak, or does it mean it will be extra strong? Only time will tell, and I will be keenly watching for the answers. As for the precious metals, gold and silver tried to move higher a couple of times this past week, only to reverse and resume the dominant trend, which remains lower.
Gold did gain 0.48% for the week but did so by building a bear flag. This gold chart is not at all showing me a sign of a low. This chart tells me we still need to move down to test the $1,250 area and see how it handles those levels. I've said for almost two years now that $1,000 looks like it is going to be tested before an uptrend in gold takes over. I still believe that to be true when looking at the longer-term monthly chart. Things take time.
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I've talked about the "blood in the streets" moment, and we have yet to see that. I haven't seen the long, and wrong, gold bulls even come close to capitulating yet. Once I see some of them begin to throw in the towel, that will be near the low mark.
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