More Correction Needed In Gold & Silver But Bullish Bias Persists

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Gold and silver remain in a correction, but the damage has been thin so far. Gold has initial support at $1980, followed by $1950 and $1900. Silver continues to hold above $24.50. The action over the next week or two can inform us if a bull flag is developing, or if there is more downside in terms of price.

The gold and silver stocks have not corrected much, but they remain above their 50-day moving averages. GDX and GDXJ have corrected 9% and 11%, respectively, and they could correct a bit more. There is strong short-term support around their 50-day moving averages.