is gold a goner, page-215

Hi Volt,
Did you notice the similarities between these two charts? (I'm sure you will recognize the top one, an old favourite of yours .)



One major difference is the time frame these play out over. The top chart is just three months or so to complete the topping pattern compared to nearly a year for the gold chart, so the psychology may be quite different with the pace of events. Gold has also shown a bit more strength over the final leg down and prolonged the fall, so possibly it can cheat death and push back up into safety over 1600. Nonetheless there is significant danger if it breaks below that 1530 support line imo. I have pointed out before that this is one asset class in which there is quite a bit of leverage. Its the inevitable consequence of a long unbroken run.

(The top chart is the S&P 500 leading up to 87 crash. I thought of it because I recently heard Marc Faber saying such an event may happen soon - only I don't think he was referring to gold.)