It has been a while since gold has lost over $50.00 in a week. But it has this week.
The outlook is deteriorating, as the market heads to the base of its range for the past twenty months at 1522. Not far below here, the major foundation for the bull run since 2002, comes in at 1491. This level is pivotal, it marks the 175 week moving average. A safety rope that has kept the market positive, even through the worst excesses of global financial meltdown in 2008.
If markets are going to unravel, a collapse in gold will help shape a new phase in the outlook for 2013. It may be too soon. It may never happen. But if gold continues to collapse as the dollar strengthens, this will be a very interesting year.