Equities bounced strongly today which gave investors even less of a reason to be interested in gold and silver. Well, that apathetic tone remains instilled in this market as the bears have been laughing all the way to the bank for the entire year. Traders, especially those holding foreign currency, have little reason to buy gold, therefore gold has slumped. I have been bearish for sometime, after all, the trend is lower. It just goes to show that it's awfully tough to time corrections, which is why one should usually try to maintain a position in the direction of the main trend.
Gold remains technically weak, below averages and below support.
The bearish pressure from gold has kept silver bulls at bay and caused a break of the 500 support area last week. July silver closed at 494.8, down 1.5 cents in another good day for the bears. The market had been quiet for some time but with the bearish catalyst from gold starting to rumble last week, the silver market shuddered, coughed to life and made some bears mighty happy. Over the last few months when silver prices have dipped below 500 the bulls have jumped in to support prices, and they may do the same again if we dip below 500. However, it really depends on what gold does as it is responsible for leading silver around by the collar.