Gold & Silver
Finally we got the bump in the precious metals that was long overdue, but so far it hasn't been a very convincing one. Gold closed on Friday at $1,113.70, a gain of $20 or 1.8%. Silver outperformed its big brother, as it should in an upswing like this one, to close the week at $15.24 (+2.9%). The gold to silver ratio now stands at 73.1.
Our short term "target" for gold in the perspective of technical analysis is for it to reach $1,130-1,140. We did reach ~$1,126 on Wednesday night which may or may not mark the high for now. If it was, then that would not be a good sign at all, in fact it would confirm the extreme weakness surrounding the yellow metal right now. And it would also add credibility the believers of gold reaching $1,000 soon.
We continue to be positioned for a weak/sideways market in gold. If gold goes nowhere in the next few months to a year, that would be (even more) devastating for the miners as very few of them are making any money in this environment.