Posted: 14 Jul 2014 02:30 PM PDT

The price of gold experienced today the sharpest price decline of 2014. Although it was usual to see these corrections last year, they have been scarce in 2014. Gold futures in USD closed 2.18% lower on the day while silver futures in USD declined 2.24%.

The encouraging news for precious metals bulls is that gold and silver declined to the same extent. If silver would lead gold lower, it would have been worse.

The hourly price chart shows today's waterfall decline. The gains built up over 3 weeks have been lost in a matter of hours.

The hourly gold chart shows the cascading fall of today, July 14th

The daily price chart is shown below. Purely from a chart perspective, it is interesting to note that gold was able to rally past the (minor) peaks of mid-April and early May. However, the rally, for now, stalled between the April and March high, approximately at the November 2013 peak. A head-and-shoulder pattern could be in the making, but given the solid chart formation it is more likely that gold will move higher in the weeks ahead, at least challenging the April 2014 peak.

Daily gold chart shows no technical damage yet

If gold would be able to get past the September 2013 highs, close to 1450 USD, we could be sure of a new bull market. Only time will tell if and when that will be the case.

Gold, Euro, And Treasuries React To Yellen | Gold Silver Worlds

Posted: 15 Jul 2014 01:39 PM PDT

This is an excerpt from the daily StockCharts.com newsletter to premium subscribers, which offers daily a detailed market analysis (recommended service).

Fed Chair Janet Yellen is generating a lot of inter-market action with her testimony before congress. I am not going to comment on her comments because market reactions could be different tomorrow. I would remind readers that I covered gold, the Euro and Treasury yields with weekly charts in the Friday's Market Message (for premium subscribers only). This analysis remains valid, but I will add three daily charts below. The second chart below shows the Euro Index ($XEU) breaking down in May and holding this support break after a decline in July. A break down in the Euro is positive for the Dollar because the Euro accounts for 57% of the Dollar Index ($USD). The first chart shows Spot Gold ($GOLD) falling back to its support zone with a sharp decline the last two days. A close below 1290 would negate the June breakout. The last chart shows the 10-YR Treasury Yield ($TNX) firming at support in the 25 area (2.5%). The trend, however, remains down and a break above 27 is needed to reverse this downtrend.

Gold Scents: CHART OF THE DAY

Posted: 15 Jul 2014 03:49 AM PDT

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Spot Chart | Gold Price Biggest Down Day of 2014 | Gold Silver Worlds | News2Gold

Spot Chart | <b>Gold</b> Price Biggest Down Day of 2014 | <b>Gold</b> Silver Worlds | News2Gold

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