Europe’s dominating the news. But the question is: Will it solve its problems? Based on what the markets are telling me, I don’t think so.
Be sure to check out my latest market update by clicking here now.
P.S. Right now, the U.S. is looking relatively good compared to Europe. However, the markets are still in a disinflationary mode, which I’ve been forecasting for you.
Gold: Here’s a new weekly chart of gold. As you can see, gold has broken its major uptrend from the low in 2008 and it’s so far been unable to penetrate back above this uptrend line. We could see a brief rally up to about the $1,700 level, but even that would not turn around gold’s immediate downtrend. It’s far more likely that we’ll continue to see lower lows in gold until there is a coordinated central bank intervention in the sovereign debt crisis. And I don’t see that occurring immediately. Therefore, the bias remains to the downside in gold.
….read more &view all charts at http://www.uncommonwisdomdaily.com/will-europe-solve-its-problems-14408?FIELD9=2
Silver: Here’s my latest updated weekly chart of silver. Here you can see that silver is making lower highs and lower lows. Basically it’s tested the $26 level no less than five times counting the last couple of weeks. That’s usually a sign that it’s breaking down that support floor here and the next test will likely penetrate right through that floorboard and see silver drop substantially lower to at least $23 where I have some system support and probably even lower to $20, perhaps even just below $20, depending on how long it takes for silver’s next leg down to unfold?