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The only bullish note is that gold has fallen perfectly into The Box marking the 50-62% retracement of the rally that began in very early August at or near to $1,390/oz and peaked in early September at or near to $1,550/oz. The upper boundary of “The Box” is thus $1470/oz; the lower is $1450 and the low today thus far is $1455, so “The Box” is intact.
we shall suggest that those who’ve not been long of gold become so this morning. Having cut back on our own long positions in recent days, we will be topping those back up a bit this morning almost certainly.
However, we do find it of interest how much more seriously we… and the market collectively…take a break in spot gold from $1530/oz to $1470… a material sum to be sure… than we would a stock that has fallen from $15.30/share to $14.70/share. The latter we would “see” as reasonable and even quite common but the former seems to be material and mind-numbing.