The gold market fell off of a cliff on Friday, breaking through the recent low at $1540, and actually came down to the $1500 level where it broke through slightly. With that being the case, we are certainly testing the absolute bottom of support for the gold market at this point. We have been suggesting that $1500 will be the pivot for the market at this point, and as a result we believe the gold market has completely fallen apart at this point, and cannot be trusted for a bullish action.
We think that the market more than likely drops to the 1450 level in the short term, and could fall much farther than that. Ultimately, this market will eventually be a screaming buy, especially considering everything that’s going on the central banks and their incessant printing. After all, we are in the middle of a currency war, and eventually everybody loses. Looking forward, there will come a day where we start to see $50.00 gains over the course of the session, and volatility will certainly pick up. At this point in time however, the gold market certainly has had significant support smashed through. In fact, the market continues to accelerate to the downside as we type up this report. Currently, the market is actually down to the $1485 level, and as a result this looks like a market that is simply going to continue to the downside.
The reality is there will someday be a “great flush” of the weak hands in the gold market, and that point in time will more than likely mark the bottom. As bad as the Friday session has been, we think that there will be a few other ugly ones until we get everybody out of the market. However, in the long-term there simply has to be inflation, simply because currencies are being credited such a ferociously aggressive rate. As a side note, it should be noted that gold continues to make new highs in Yen. So this more or less seems to be a dollar-centric story.
YOU SHOULD NOT TAKE ANY MATERIAL posted on this BLOG AS RECOMMENDATIONS
TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED.
TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED.
Do your own due diligence.
No one knows tomorrow's price or circumstance.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
King Regards
