gold crash warning____++++

Read this. The experts know where gold is heading. They earn a fortune each year for their expertise and knowledge. Ignore them, but don't say you haven't been warned.

Wolfie has plenty of supporters. Down with gold. Up with the US dollar. Yeh!!!!

"Gold is more likely to turn tail and break back down to $370/oz than revisit 15-year highs before the year-end, technical analysts said yesterday.

Spot gold peaked in January at $430,50/oz - its highest since December 1988. It came tantalisingly close to that level again in April, but failed and slumped to a low of $371/oz in May.

It has since been chopping around in a $393-$419 trading range, leading some of the more bearish to proclaim its three-year bull trend is over.

Technical analysts, who study charts of historical price patterns, said that, in the short-term, gold would remain trapped within those parameters, possibly attempting a modest move higher.

The metal was quoted at $407,80/408,50 at 1141 GMT yesterday, up from New York's previous $406,75/407,50.

"For now it is in a choppy range with a slight near term bias to the upside, but we'd be looking to sell in to that strength," said Robin Wilkin, JP Morgan's foreign exchange and commodities technical analyst.

Independent analyst Cliff Green said the implications of gold's recent sideways activity were that it was topping out.

"That's why I would prefer to sell the rallies within that range rather than buying the dips. I just think it is a deteriorating picture that will eventually resolve itself by a big break to the downside," he said.

Shorter term, gold's outlook was more positive, with analysts looking for a move back up towards August's breakout at $414.

"Right now it looks like we're rolling the dice to break above $410 again," said Gerry Celaya, chief strategist at UK-based Redtower Research.

"If that happens it will be looking to the top of the channel around $418/419, but we're not that bullish and think gold will stop before there between $410 and $413," he said.

All analysts said a break below support at $393/95 would open the floodgates for a push back down to May's low of $371 and they expected this before the end of the year.

"Eventually, I could even see us going back towards $350," Green said.

"Longer term, I am quite negative." - Reuters.

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http://www.miningweekly.co.za/min/news/today/?show=57374