Quote from MJUK:
Gold is looking bearish now. It has broken its intermediate trendline and fallen back into its long-term down-trend channel.
The last move down appears to be a five wave down signalling a change to a bear market.
I have given up on gold for the time bieng. here may be a retracement back up to the 920-930 level but I think it will be a retracement in the context of a new downtrend.
ALoha mate, thats some good analysis.
I also thought the same thing when i looked at the monthly n yearly chart for gold earlier,
since even though this 889 level does look cheap relative to 3weeks ago,
over the last 5years this is extremely high still.
And this latest spike down doesnt look like a revesal formation at all,
instead looks like its near the top of a down path move.
+There is alot of conflicting fundamentals hitting gold-
(Dollar getting weaker causing gold to get weaker. And dollar has ALOT more weakening to do.
Dow getting stronger means that people have been ulling money out of gold as the safety trade, and instead investing it in the dow.
And the dow has a fair bit more upwards area that it could rise to).
Combined with the fundamentals of gold in who the main buyers are-
Think the figures are 80% of gold is bought for jewellery and industrial / 20% bought by traders n investors on the stockmarket.
And with the continuing down move in consumer spending on luxury goods there will be on-going lack of demand for gold.
