The quotes below are not our interpretation but we agree on the direction.
One of these days speculators are going to come to a mass realization that the reports of buying in physical, with premiums to futures and pictures of queues is only half the story and the buying is being met with even larger selling and we will retest the $1179.40 low from June.
Our best guess for the timing is somewhere around the Hindu festival of Diwali this November
From Bloomberg:
Gold May Fall to $1,270 on Head and Shoulder: Technical Analysis
Gold may extend its 19 percent slump since January as prices on charts form a “head and shoulder” pattern that signals more selling, according to Credit Suisse Group AG.Oddly enough, although Credit Suisse is based in Zürich that is not how the Gnomes of Zürich talk.
Bullion fell below $1,360 an ounce, a support level from the upward trend that began in late June, David Sneddon and Christopher Hine, technical analysts at the bank, said in a report yesterday. The drop may lead to the formation of a small head-and-shoulder top, they wrote. The pattern comprises three consecutive peaks on a chart, with the middle being the highest.
Prices may slip further to test $1,337, the 38.2 percent retracement of the June-August rally on Fibonacci analysis, according to the report. A fall below the level “should add weight to the scenario” that a broader bear trend is resuming, taking the metal lower to $1,270, they wrote...MORE
Today's action:
