That is an excellent question, and here is a brief answer.
I have been dictating my commodity exposure using a market model that has worked for many decades, and this is the first time I have seen it not work.
ZIR have affected all markets and skewed valuations leading to yield chasers causing bubbles. Charts are still effective if you are mapping trends regardless of interest rate changes.
I use charts to clarify my position and watch trends. We are experiencing unique global financial circumstances, so using history as a guide is very dangerous.
It is very clear in USD the gold trend is down.
Being in Australia, I added a more relevant chart regarding the price of AUD gold.
I don't have price targets on my charts, as I don't use them.
In the AUD gold chart you can see price can fall toward the lower uptrend line that started in 1999 is currently in play. That trendline is sitting around the 1000 AUD mark. The USD gold trend has broken through the long term trend to the downside, in AUD it is still way off that.
I made some decent money in holding physical gold, but I will get take profits if AUD breaks support.
I still think there can be another bull market in gold taking it to new highs, but these "new market paradigms" are making it difficult to use reliable past market relationships.
