Is the Gold Uptrend Over?

This is a quick update following another day of drubbing for the precious metals. The uptrend I drew in my previous post has been broken although streetTRACKS Gold Shares (GLD) has remained above its 50 dma of $89.84. An optimist might argue that GLD is sitting at another more important trend line. Nonetheless, it's prudent to listen to the price action.If GLD closes below the 50 dma, it will be a good short given how gold trades.

One may argue that the negative COT positions presaged this decline. This is another indicator to pay attention to in the future!

click to enlarge

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Comments

[Francis Sch...:]

This is 'one' very poor argument on Gold. Gold is the only REAL MONEY that is available and although technical analysis is important, one must always join the technical Analysis to the fundamentals before making up an opinion.

2008 Jul 24 08:58 AM

[CLH:]

Buy DZZ. There are no fundementals for gold. Dollar up and no inflation. seekingalpha.com:80/ar...

2008 Jul 24 09:15 AM

[kkin365:]

What's DZZ? Let us have a short lesson.

2008 Jul 24 09:25 AM

[User 30121:]

CLH: Stupid is as stupid does! I can't wait for Feb/Mar 09 when gold is hovering around 1320 and your still blaming Bush....

2008 Jul 24 10:49 AM

[BrunoT:]

No fundamentals for gold? Try massive money printing to fund the numerous bailouts. We may see our first $1 Trillion budget deficit this year (if they avoid accounting tricks to hide it)

And the fundamental analysis thing is ridiculous hocus pocus. It's like using numerology.

The fall in gold the last few days was nothing but a false sense of relief over bailouts and govn't pronouncements that won't help in the long run. Short gold at your extreme risk.

2008 Jul 24 11:19 AM

[ramkumar:]

fall will be for short time only, look for furhter hike in crude and gld in comming days.

2008 Jul 24 12:06 PM

[GMiki1:]

Yes, gold dropped due to the drop in crude and the triumph of hope over experience. (I love that expression.) I would not want to be sitting in anything but the resources right now--especially gold and silver. The extreme optimism in these markets in the face of reality is astounding.

2008 Jul 24 01:47 PM

[Kunst:]

User 30121: Hurling insults doesn't enhance your credibility. Everyone is entitled to his opinion. Time will tell who is correct.

2008 Jul 24 06:14 PM

[CaptBob:]

"See, Bidding Fox, when one observes Buffalo Heard from great height, it becomes clear, that in next stampede they will run off cliff which is too close for all to see clearly".
"We go now to bottom to pick up some dead and have feast, O Great Chief ?"
"Patience B.F., Patience, knowing something will happen does not make it happen now".

2008 Jul 24 08:17 PM

[Bob Gary:]

Are you kidding? It's always darkest before the dawn....of a depression. check out this piece!

www.greenfaucet.com/th...

2008 Jul 24 08:18 PM

[au trader:]

gold always seems to fall hard around the futures rollover. nothing new this time around.

2008 Jul 24 09:33 PM

[Ames Tiedeman:]

Not sure how the longer term up-trend can be over with inflation ready to rage in the coming years..

2008 Jul 26 10:37 AM