If I had been paying attention when Izabella Kaminska wrote "Capping the gold price" , I'd have more chips to play with.
Alphaville posted it on December 7, 2012, five days before the $1715 intermediate term top.
Instead it took me four weeks to get around to it, Jan. 3, with "Spot Gold Down $21.80 as HSBC, Credit Suisse Lower Forecasts (GLD)"
Here's the trading from that day:
As you can see, my thought process was something akin to "Saaaay, something appears to be happening with gold". We just hadn't been paying attention.
On Feb. 15 with "Gold Is Approaching a Waterfall Decline" at $1627.90 I finally got around to posting the target:
The next area of support is all the way down at $1525 from May 2012.Better late than never, right? Right?
Gold front futures spiked down this morning:
Now we see if that line holds. We'll try to be more timely on the next prognostication.
Here's Kitco's A.M. commentary which also supplied the headline:
Gold prices are under strong selling pressure Friday morning and have hit a 15-month low as more serious chart damage has been inflicted. Heavy stop-loss orders were triggered when June gold dropped below what was strong technical support at last week’s low of $1,539.40. Weak-handed holders of long-gold positions were also forced to liquidate on this latest downdraft in gold prices. The empowered gold market bears are now eyeing major technical and psychological support at the $1,500.00-an-ounce level. June Comex gold last traded down $30.50 at $1,534.50 an ounce. Spot gold was last quoted down $25.80 at $1,535.75. May Comex silver last traded down $0.812 at $26.89 an ounce.
There has been no major, fresh fundamental news development to spark this latest drop in gold prices Friday. However, there is some lingering concern among gold traders that if Cyprus sells some of its official gold reserves to help finance its European Union bailout package, other countries like Italy, Portugal and Spain may do the same. Earlier this week it was reported Cyprus would sell about 10 tons of its gold reserves to help finance its EU bailout....MORE
