Author: Peter Kurata

Covestor model: Smart Money

Disclosures: Long GLD, SLV

The week of 7/25 was brutal, with heavy selling occurring on 4 out of 5 days. This capped off an ugly month of trading which whipsawed up and down, creating an almost perfect “M” pattern. The soap opera surrounding the on again, off again debt ceiling bill created a volatile, news driven market, which makes for a difficult investment climate.

One thing has not changed. The US, along with many other countries, are way over their head in debt. Many also agree the economy here in the US is still deteriorating. Inflation continues to be a problem, as well as the real estate market and unemployment. This is why I am particularly bullish on SPDR Gold Trust (NYSE: GLD) and  iShares Silver Trust (NYSE: SLV).

GLD did see some selling pressure in the last two weeks July, so may be a bit under pressure.

SLV is showing bullish technicals. I’m keeping a close eye on it, as the price continues to climb toward the upper $40s and a possible breakout to higher levels.