NEW YORK (TheStreet) -- Precious metals remained under pressure last week with little hope in sight as equities continue to advance.
Gold (GLD) dropped another 2.98% this week as it breaks major support with increasing volume. This is not a good sign.
It appears likely that gold will test lows back at the $1,180 level. New shorts are coming in as we break a major support level. Some would argue those short positions are a good sign. When gold strengthens, those shorts will have to cover, causing a pop. But that's not likely anytime soon.
Silver (SLV) lost some 3.12% for the week and is also accelerating lower on increasing volume. Silver remains in a solidly defined downtrend channel and is showing no real sign of stopping yet.
Silver is still leading gold lower, even though it did briefly flash a more bullish signal this past week -- which was quickly annulled.
A major support remains at $18. We would see a ton of selling at that level, as that's where many people got in. People will not let silver show them a loss, so expect a flood of physical silver onto the market shortly.
We need that, a so-called "blood in the streets" moment, and a break below $18 would bring that on.