Precious, my precious metals.

Gold and silver are the slutty sisters of the mineral world. If Gold is sucking hard, you can almost guarantee that Silver will be on her knees sucking harder. That’s what this forecast is all about. While the European world is in a dickfest over the Ukraine and who can out embargo who, our mineral girls are going down harder than a Brazilian hooker during world cup. Below is my forecast on those dirty little girls.

GOLD (XAUUSD)

Dominant bias: Bearish

Gold has been trending downwards quite aggressively since the middle of July, 2014. From the supply level at 1344.80, price has fallen and tested the demand level at 1225.50. This is a downward move approaching 2,000 points. Weakness in the market remains so price may continue further downwards, despite occasional rallies. In this instance, rallies are really short-selling opportunities in the context of a downtrend and price may ultimately reach the demand levels at 1220.00 and 1210.00 successively. However, this weakness is not going to last forever – there is no such thing as an ever-lasting trend. It is likely that Gold will rally sustainably around November or December, 2014.

SILVER (XAGUSD)

Dominant bias: Bearish

Silver is also in a bear market, having been dropping since the middle of July, 2014. From the resistance level at 21.5400, price has gone far enough south to test the support level at 18.4200. This is a downward move of over 3,100 points which may not yet be exhausted, so reaching the support levels at 18.3000 and 18.1000 is not out of the question. As with Gold, bears will not hold sway forever, so a turnaround is expected during November / December, 2014.