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Nov 2018 – Gold & Silver – Final Declines May Be Underway 12th November 2018

In last week’s report, I highlighted the following:

“Should we begin downside follow through this week, and break below the lows struck this past week in Gold [$1,212] and Silver [$14.20], that makes it rather clear that we have begun in the final wave 5 in this 2-year correction. Investors need to be prepared for one more push in both markets to the downside in the coming weeks unless the market shows evidence to suggest otherwise. For those looking at this complex from a longer-term perspective, the market is presenting you with an amazing buying opportunity, which may compare to the one seen at the end of 2015.  The levels we are seeing today may never be seen again in your lifetime.”

Following the declines at the end of last week, the level of negative sentiment and general despondency is beginning to feel similar to the last time we struck a major low. If Gold and Silver have begun the 5th wave declines we have been warning about for several weeks, I expect the despondency will turn to outright hatred by the time a low is struck. Gold, as highlighted in last week’s report, pushed abit higher through our highlighted resistance to $1,242, consolidating in the $1,230’s before drifting lower. Gold will need to close below $1,212 to suggest we are likely beginning a decline towards the $1,150 region.

Daily Gold Chart 12-Nov-2018

Several weeks ago, I wrote that we ideally needed to see a rally in silver towards $15 – $15.20 but unless it showed strength to clear that region of resistance, it would likely count as a 4th wave corrective rally that would give way to a 5th wave decline. We got that turbulent rally and it topped within 1% of where we expected. At this point in time, unless we see any further choppy price action, it does look like that silver is now heading down for its final low.

Daily Silver Chart 12-Nov-2018

To conclude, my expectation is that we are heading to lower lows for Gold and Silver. Lastly, I want to remind those looking at this complex from a longer-term perspective, the market is presenting you with an amazing buying opportunity, which compares to the one seen at the end of 2015.

Jonathan Salmon

Jonathan Salmon

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