The problem I have with that chart is that how does the price of gold factor in an interest rate cut before the fed meets in April. Everything, currency, gold, shares factors in beforehand the expectation of something, so why would it keep falling in a negative trend when the stream of data is favoring a rate cut?
It's been up and down like a yo, yo, so you may be right, but maybe fundamentals and the fact that just as bulls run out of steam, so to do bears, and they've hit strong, strong resistance supported by physical buying and shortage of supply. If it goes down that low then basically we are saying that gold has entered a bear market with a drop of over 20%.
BHP had a head and shoulder pattern two weeks ago I remember reading, now it's flying and also in London tonight. Sometimes the H&S is right, but can that be in the biggest bull market to have existed, in the best performing sector? Time will tell.
