Unexpected! Gold Still Locked In Downtrend
THE GOLDEN WAITING GAME
Aw, you have to just love it. The press and the talking heads and gold merchants are forever plying their story line about GOLD dramatically rising with no limits in sight. Now, don’t get me wrong, I’d love to be able to say that this was what was going on right now, but, that would only be joining the emotional crowd and spouting ‘feel good’ market reports.
GOLD: The Whole Truth
Gold has been declining ever since 2011. That’s about 5 years now.
Yes, there has been some positive movement upwards over the last year, but, this only from the extreme lows made in December last year. Yes, there’s been lots of news about Gold lately as it has rallied to it’s present high area.But, No, this isn’t the good news most suppose.
The reason Gold is back in the news is because GOLD has rallied to a top made a year ago and, from which, it promptly declined to make new lows. We face a similar possibility again. This can be clearly seen on the chart above once we take away the emotional excitement and the bad economic news (which is everywhere it seems).
Everyone wants a rocket ride to the Moon with Gold as the launch vehicle. This will come in it’s time, but, don’t be fooled by the loud voices. These same voices have been wrong now for years. They have no credibility left or shouldn’t. For years, on this website, I’ve told the Truth about the markets over and over again. Not that the predictions were popular, but . . . they were almost always correct especially about the long-term trends and the fake rallies and dips. Those of you who have been following for years now know this to be true.
If GOLD can break above $1300 on the Weekly Close, only then, can we prepare for a real ride to the upside and an end to the 5-year decline we’ve seen. What we’re likely to see instead though is another decline to lower levels. Watch for prices to break steeply lower if we have a Daily Close below $1200.Stronger confirmation will occur if we have a Weekly Close below $1200. – George