Monday, April 29, 2013

Another Big Selloff Coming for Gold

Going back to Thursday evening's "UPDATED--Japan "Core"* CPI Prints at Negative 0.5%, Gold Pops":
...Gold picks up another $10.90 to $1479.10. Somewhere between that price and $1525 (remember $1525? target on the way down?) is a dandy spot to sell some shiny stuff.
Maybe one last "Buy it before it goes higher" spasm for a couple percent.
ZeroHedge is too gleeful, PPI is more important at this stage.... 
And From Today's MoneyBeat:
Gold’s bounce could last a while longer, but technicians believe the bigger downtrend remains very much alive.

It’s been two weeks since gold prices staged a historic plunge. Front-month gold futures fell $203.70, or 13%, in two days, to settle at a two-year low of $1,360.60 on April 15. Since then, prices recovered to a high of $1,484.80 in intraday trading on Friday, before pulling back to $1,453.60 at Friday’s settle.

While technicians say gold could continue to bounce around in a relatively narrow range over the short term, they believe another big selloff is coming.

The rebound “hasn’t done anything to undo the damage done over the past week and a half,” said MacNeil Curry, head of global technical strategy at Bank of America BAC -0.00% Merrill Lynch Global Research. If anything, he said, the low-volume bounce off the lows has reinforced the negative technical bias.

“Volume traditionally follows the trend, so the [recent] low volume says the trend is still very much to the downside,” Mr. Curry said.

He thinks gold could eventually fall below the previous lows and test key support in the $1,250-$1,300 range before bouncing again....MORE
Front futures $1472.10 up $1850, here's the recent action from FinViz:

And here's the action in spot, April 23-25 via Kitco: