Dominant Bias: Bearish
Gold is bearish in the long-term, and neutral in the short-term. Apart from the noticeable downwards movement in the first half of May, price has not assumed any directional movement so far this week. A rise in volatility will be witnessed in this June, which would most probably favor bears, to corroborate the long-term bearish outlook on the market. The support levels at 1280.00, 1270.00 and 1260.00 may be breached to the downside. However, the expected southwards breakout may not happen without any challenge from bulls.
Dominant Bias: Neutral
Silver has been mostly neutral this year. The ongoing consolidation started in January and it may continue in June (although this does not rule out any possibility of a maniacal breakout in the month). This year, price has generally oscillated between the supply level at 17.600 and the demand level at 16.000. As long as price stays within those demand and supply levels, the neutrality of the market will be in place. The more the neutrality continues, the stronger and the more protracted a breakout will be when it does occur. This is not a good market for swing and position traders, but market neutral strategies are ideal right now.