Gold: Still Further to Drop

This is an extremely bullish chart (click to enlarge) on the double short gold ETF which doesn’t bode well for gold in the short-term. It’s been dropping quite a bit lately, but until this chart shows a more prominant topping pattern, it looks like it has further to drop.

Comments

[dlaw:]

And judging by this site, sentiment for gold is still pretty darn positive.

But who knows?

2008 Oct 22 06:30 PM

[EL-GRECO:]

I dont see how you relate to a chart of short gold in order to predict its future price. the chart is only an observation of what has happened; it cant tell you what gold is going to do. But price movements in the dollar, money supply changes and hedge fund redemptions sure can.

2008 Oct 22 09:53 PM

[Jeff Pierce:]

It's more of an observation as I'm not trying to predict that gold is going down more than it's likely to see new lows and it did drop 4% today(Thursday). Combine that with the extreme weakness in ETF's GLD and SLV, and the gold producers I see now reason to become bullish about gold at this moment.

I was very bullish on gold in September when I thought it would act as it's traditional safe haven, however when it fell day after day I began to think something was very wrong with this picture and have looked for further losses in this sector for the near term.

2008 Oct 23 09:44 AM

[Metalwhizz:]

Technicals is no longer really useful for gold and silver as much of what we see now is possibly a result of much manipulation. Just go where you clear mind is leading you. Just too much noise to reveal the truth.

2008 Oct 23 10:09 AM

[Pipo:]

Gold wiil trend much higher.

Jim Rogers says governments are creating an inflationary holocaust.

jimrogers-investments..../

2008 Oct 23 10:21 AM

[Jeff Pierce:]

Huge Jim Rogers fan here, and when the charts of gold turnaround I'll be right there, but I just don't want to be too early. The folks over at financialsense.com have been preaching gold forever now, and look at where it would have got anybody buying and holding onto gold right now. Remember, I'm a big fan of Jim Puplava, and he's often right, but he's also almost always early.

2008 Oct 23 01:35 PM

[kiwi101:]

Please don't tell me these SA authors are being financially compensated for writing these "articles".

2008 Oct 23 02:04 PM

[CaptBob:]

It will go down before it goes up---but it will go up!!

Trick is pick the bottom.
Simple: As soon as dollar demand dries up and inflation kicks in--or--whichever comes first.

Manipulation or Political smokescreen??-take your pick--Optional.

2008 Oct 23 03:51 PM

[swellman:]

Hey Kiwi101, bang on.
There seems to be some real low grade analysis popping up more and more.

2008 Oct 23 10:14 PM