Wednesday, February 20, 2013

Gold Decline Approaching Rout Proportions (GLD)

$1591.80 down $12.50, last.
Here is the last 24 hours of action at five minute intervals via FinViz:


Although the lack of accurate volume reports in the physical makes chart reading in commodities closer to Etruscan entrail reading than to any kind of science, sometimes, if you get the direction right you can see the points where emotion has had some effect in the past. As We said in Friday's "Gold Is Approaching a Waterfall Decline":
...The next area of support is all the way down at $1525 from May 2012.
Which is readily apparent on the one-year chart as the cluster of daily readings that supplied the May bottom:

$1525 and then we'll probably have to resort to some Fibonacci, blue-lock-fraction, Gann fan, ignore-the-man-behind-the-curtain magician misdirection.

Here are some of our recent posts on the shiny stuff:
Sept 11 
Barrick Gold's Chairman Selling Toronto Home ($25 Mil.) ABX
Dec 4 ($1719)
With Gold at the Bottom of the 11-Year-$1500-Gain Trendline-Channel Is it Time to Look at Triple Levered Inverse ETN's? (DGLD; UGLD)
Dec 18 ($1,684.80)
Gold Shows Signs of Outright Collapse
Jan 3 ($1640) 
Spot Gold Continues Collapse As Asian Markets Open
Jan 3
Repost--"The Price of Gold in the Year 2160" (GLD)
Feb 12 ($1643.90)
Gold Hits Bottom, Digs (GLD)
Feb 14 ($1635.50)
Soros Bails on Gold ETF (GLD)
Feb 15  ($1627.90, $1614)
Gold Is Approaching a Waterfall Decline
Ummm... About That Waterfall Decline for Gold
Feb 19
Gold: A Trend Appears to Be Emerging

And a couple where we linked to FT Alphaville's Izabella Kaminska:

Feb 4 ($1676.50)
The Trouble With Gold (GLD)
Jan 3 ($1640)
Spot Gold Down $21.80 as HSBC, Credit Suisse Lower Forecasts (GLD)
...By the way, the Alphaville article was posted five days before the recent $1715 high in Kitco spot

Both of those last two are worth a look.

And as I said in December's "In A Horrible Trick On Gold Owners, Au FALLS After Fed Statement":
First it was the demise of the Twinkie, the only food that could survive the apocalypse.
Now it is gold that is failing, the least reactive of all the noble metals, the one that laughs at pure nitric acid, the refuge of both the obsessive and the merely concerned:
Well played Mayans, well played.