Gold and silver prices remain weak. Despite their modest surge at the start of the year, they are both now coasting more toward the downward side than the upward. We already pointed out in March that both metals would struggle to turn up this year and, at this point, our opinion remains intact.
Last month, both metals got hit by a strong dollar, which is something we expected to happen as we stated on April:
“The direction that the US dollar takes through the rest of the year might determine where these two precious metals head in 2014. The dollar breaking down to lower levels will help gold and silver turn upward. However, we see the dollar more likely to go higher, having a depressing effect on gold and silver prices.”
What This Means For Metal Buyers
Gold and silver need to show further strength to make us turn bullish. The recent bullish move of the dollar is bearish for gold and silver prices. Looking at the current picture, we don’t expect these two metals to trade well above today’s levels throughout the rest of the year.
What do you think will happen, and why? Share it in the comments section.