it's going down the toilet, page-105

The 12% decline in gold since the October 5 high of $1796 has fooled gold bulls, who believed that prices could only go one way.

Calls for ever-higher gold prices have been particularly strident in the wake of central banks around the world pumping liquidity into credit markets and employing record debt monetisation.

But the decline in gold has moved against central bank actions with gold topping in September 2011 at $1921. It’s now down more than $350 from this high (or more than 18.5%).

Overnight gold confirmed a bearish “death cross” with its 50-day moving average crossing below its 200-day MA. Gold has long-term support at $1527.

Gold is short-term oversold on extreme bearish sentiment so a snapback rally should soon develop. But gold prices should continue to work significantly lower as the next phase of the underlying 'deflationary' bear market in financial markets & global economies unfolds during 2013.