Monthly metals re-cap, 5/31

I just wrote up a weekly metals recap thinking today was Friday. In my defense, heavy drinking has been shown to reduce the integrity of white matter, the brain's highways that communicate neuron messaging. But on top of that, the financial markets have been incredibly boring of late (not that there's not a lot of interesting stuff going on, just that it's all going on behind the scenes).

Well at any rate it *is* the end of the month. Seems like yesterday I posted the monthly gold chart and mentioned we had completed an unprecedented third red month in a row. That was April, now we add May for a total of four consecutive red months and counting. What a bullish development for anyone afraid gold was getting ahead of itself.

My gold and silver predictions from a month ago ($1550 and $27.50) have held quite well, though there have been a few quick spikes lower. Note the 21-month MA on the monthly chart above, which was among the main sources of my predictions. 

I've also been looking at the CCI(50) indicator, and noticed that whenever gold fell into the red zone below, that never marked a rally-preceding bottom (as when sharp drops in the indicator didn't quite make it to the red zone): there was always another shoe to drop (at least another scare, even if a lower low wasn't made). Well you'll note that's exactly what happened, so now I'm waiting for the CCI(50) to get back over -100.

Here's the $GOLD:$CRB index from last post, which was discussed a bit in the comments. Breakout? A few more up days, and it will certainly start looking like the next big move for gold as a safe haven is upon us. 

Also check this one out, suggested by victor_the_cleaner. Also at an all-time high!







Then there's the $CCI commodities index, which is hitting the $506 level that I warned about a month ago, when it was at $542 ("the $506 level, at the 50% retracement, looks like a good time for a QE3 announcement.") If QE3 is indeed soon announced, and the $CCI jumps, then I deserve to be crowned and hailed as a grandmaster of prognostication by the governing body of mildly innumerate chartists forgetful of all my bad predictions.  

Finally, the "10 yr yields in silver" chart, which still looks ready to drop precipitously to me ... despite all-time low yields.