by Steve St. Angelo, SRSRocco Report:

With the Fed propping up the entire market and extreme greed driving the stock indexes to new highs, investors have lost interest in the precious metals, for the moment.  However, I am not surprised.  What is taking place in the overall markets is precisely what I forecasted back in September.

After gold and silver broke out of key resistance levels in the summer and then moved to new highs for 2019, a consolidation period would likely follow before the precious metals began the next leg up.  I mentioned this in my last Youtube precious metals update, Silver Price Update & End Of Mining Era, published on September 21st.

In that video update, I posted this daily chart on silver:

I stated that silver would probably correct back down to these price levels before setting up for the next phase higher. Today, silver fell to a low of $16.71 in the U.S. markets ($16.58 in overnight markets), so it seems to be heading down to the $16.20 level.  Here was the silver price on stockcharts as of Thursday, November 7th.

I believe silver will fall back to that $16.20 level, according to how traders are now anticipating the market.  Again, I am not saying that silver should go down to $16.20, especially with all the Fed money printing and Repo-madness, but this is how traders are viewing the silver market.  Why?  Because the Fed is now buying $60 billion a month in Treasuries, the same as the U.S. Military monthly spending budget, it has given the market another FALSE BUYING SIGNAL.  Thus, GREED in the market has gone back up to a record “Extreme Level.”

So, while GREED has moved into high gear in the broader markets, APATHY has taken root in the precious metals.  We can also spot this taking place if we look at the Alexa.com traffic statistics of many of the leading precious metals websites. Since the peak in AUG-SEP, many of the precious metals websites have seen their traffic fall 30-50+ %.  Which means, the precious metals community is just as fickle as the mainstream media.  Of course, there will always be the DIEHARD gold and silver followers that will continue to read precious metals articles every day.

Regardless, gold and silver will likely continue to selloff until they reach their BREAKOUT support levels.  Gold is consolidating to the $1,400 level, and could possibly go back down to a low of $1,360 before setting up for the next phase higher in 2020.

The key long-term support level for Gold is $1,360.  It may not fall back to that level, but it shouldn’t close below that on a Monthly Basis, and I doubt it will.  Silver’s key long-term support level is the 50 Month Moving Average of $16.45:

Silver broke through and closed above the 50 Month Moving Average (Blue line) in August for the first time since 2013.  As I also mentioned, in previous articles and videos, silver continued to hit up against the 50 Month Moving Average from 2016 to the middle of 2019 before finally breaking through in August.  This was an important first step.

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