Gold and silver have recovered moderately over the past two weeks, which is certainly a positive sign that buyers remain ready to step in anytime.
Here is the technical perspective for gold for the short and intermediate timeframes, which shows that gold volatility begins lessening.
After silver "flash crash" last week, we believe over the long run, silver will eventually be moving higher.
The volatility in the gold market could increase massively throughout the second half of 2017 and into 2018. Gold is in the process of forming a long-term breakout.
The CRB index has recently broken below its 15-month support zone between 176 - 179, which had held since April 2016.
Gold price fell sharply following the Fed meeting on Wednesday, giving up $20. Investors consider the last FED news is seen as gold-negative.
The failed breakout and reversal back below the long-term declining trendline at $1,280 for gold this past week is a negative development for the entire precious metals complex. From a technical standpoint, it is exactly what we did not want to see as far as a market ready for a major advance.
We can see that the US bond market, at over $40 trillion in value, is much larger than the US stock market, which comes in at a little over $25 trillion.
The precious metal is now close enough to its key long-term 2011-2017 downtrend, and it could be another attempt to overcome the critical level.