The gold blowoff rally which started in mid-July 2011 and has been very persistent in its upward movement appears to be coming to the definitive end that we have been anticipating since early September. The goldbug guru’s on CNBC seemed to spend an inordinate amount of time presenting the case for gold yesterday just as the wheels were starting to come off. In my opinion he should take credit for being right about the second half gold move from $ 750 to $ 1900 an ounce and get out of the way. Major gold sales will now be the order of the day as austerity will increase the demand for usable money. Watch Gold in terms of the Euro, the favorite measurement index of gold promoters these days. A close under 1289 on that measure will signal the start of the meltdown.
The S&P 500 continues to be locked into a 1220 to 1270 sideways price distribution range.
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