Gold Breaks Below $1200, Silver Drops Under $17

Source: Nanex

After A Week of Relentless Selling That Began With 150 Million Oz of Silver Dumped onto the Market, Gold & Silver Have Just Broken Below Critical Support:

 

Silver was down another $0.50 on the day, and continues to slide during Globex trading, breaking below $17:


1 Month Silver:


Silver has now given up more than half of its gains over the entire 2.5 month post December rate hike rally in less than a week:


Gold isn’t faring much better this evening, as the metal has just dropped below $1200, which we had hoped to serve as crucial support on both a psychological and fundamental levels (gold’s 100 week moving average is currently $1203). 

10 Consecutive Days of Lower Gold Prices:

A weekly close tomorrow under $1200 sets up the potential for a rather quick move down to the next technical support level…which is down near $1140 at the bottom of the massive 6 month wedge pattern that has been forming on the gold chart. 

 

 

Hold onto your hats, we may be about to witness the final washout before the Fed Hikes Rates next Wednesday on March 15th. 

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