In retrospect, the gold bulls have to be a little discouraged with yesterday's action as noted weakness in the dollar failed to elicit definitive gains in gold. On the other hand gold and silver have continued to build on consolidation low support levels on their charts from the recent washout and the sellers don't appear to be overly confident yet.

However the gold market is being threatened by what appears to be a distinct rotation out of gold ETF investments toward the highflying returns being thrown off by equities. In fact so far this week GLD has seen outflows of $671 million with other key ETF's losing moderate amounts!

In fact some traders are suggesting that global economic uncertainty/risk has been brought down by an improvement in Chinese data this week but also by a surprise sweep of favorable numbers from Europe and that clearly reduces the allure of gold.

In short, gold and silver appear to have found some value on their charts at this week's lows, but we expect volatility to expand and think the odds of a key trend decision in gold and silver are high and finally we think that the bear camp has a slight edge.

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Non-Reliance and Risk Disclosure: The opinions expressed here are for general information purposes only and should not be construed as trade recommendations, nor a solicitation of an offer to buy or sell any precious metals product. The material presented is based on information that we consider reliable, but we do not represent that it is accurate, complete and/or up to date, and it should not be relied on as such. Opinions expressed are current as of the time of posting and only represent the views of the author and not those of Zaner Financial Services LLC, unless otherwise expressly noted.