Loading ...The “pop” in gold has been more of a base building consolidation. This of course warns that what will not rally strongly when the cycle turns up, goes down harder when the cycle turns back down. We achieved NO Yearly Sell Signals in gold so from a long-term perspective all is still well. Nevertheless, key resistance remains at the 1250 level and only a weekly closing back above that area will relieve the selling pressure. So the uptrend in gold is barely visible, and that is a major concern for the downside.
When BIG BANG starts to unfold, as people begin to become frightened about the future, that is when things begin to pop. It does not matter what YOU think about ANYTHING. This is what the goldbugs do not comprehend. TheONLY thing that matters is what does the majority BELIEVE. Once the general perception shifts, then and ONLY then will the flight to assets infiltrate the majority and that will create the panic both up in assets and down in debt. This is why I have stated it really does not matter if there is gold in Fort Knox or not. It is always the perception. People who are biased will believe that because that is what they WANT to believe since NOBODY can prove it either way.