Last week was full of action for precious metals investors and traders. Gold (COMEX:GCG14), mining stocks, and (especially) silver (COMEX:SIG14) rallied in the first days of the week only to disappoint on Wednesday and Thursday. No wonder; the rally didn’t have “strong legs” as gold’s strength was meager compared to that seen in the euro – another USD alternative.
In today’s essay we will provide you with three gold-related charts (courtesy of http://stockcharts.com), each will tell a different story about gold’s performance, but ultimately, they will all point in the same direction – the direction of another move lower in the price of gold.
Let’s start off by taking a look at the chart featuring gold priced in the British pound.
As far as gold priced in the British pound is concerned, we saw a verification of the breakdown below the previous 2013 low, nothing more. The outlook remains bearish.
Even though we saw rally in USD terms, and it looked quite bullish at the first sight, keeping an eye out on gold priced in other currencies warned that not everything about that rally was so bullish. It was not a true rally, but a verification of a breakdown.