Gold moved sharply lower yesterday after days of indecision. Coupled with the break of the support at 1269, a further short-term decline is likely. A support stands at 1238. Hourly resistances can now be found at 1284 (21/05/2014 low) and 1304 (22/05/2014 high).

Ed Note: As Gold seems to be weakening, in case you missed it, Jim Rogers explains in this Saturday May24th article: GOLD IS A BUY UNDER $1,000 AN OUNCE; HERE’S WHY IT COULD GET THERE: JIM ROGERS

Longer term, we are sceptical that the horizontal range between the strong support at 1181 (28/06/2013 low) and the major resistance at 1434 (30/08/2013 high) is a long-term bullish reversal pattern. As a result, a decline towards the low of this range is eventually favoured.

Silver: Bearish breakout of the support at 19.26.

Silver has broken the support at 19.26, invalidating the recent succession of higher lows. Despite the support at 19.05, a new test of the key support at 18.84 is favoured. Hourly resistances are given by 19.39 (26/05/2014 low) and the declining trendline (around 19.72).

In the long-term, the trend is negative. However, the successful test of the support at 18.84 favours a consolidation phase. A resistance stands at 20.41 (24/02/2014 high). Another key support is at 18.23 (28/06/2013 low).