You have momentum on your side my friend, and yes - we saw on friday and watched with awe.
That said, whilst I can personally see gold in the short term, remaining under enormous "downside momentum pressure" - the fundamentals (and actions of the worlds largest emerging economy - China) are actually telling a different story that you may want to consider acknowledging so as to avoid looking stupid over time.
I personally went back through the daily price movements of gold from 1970-1982 (yes, I have a bit of time on my hands) and noted the volatility in the price from 1974 to the high of 850 p/Oz in 1980.
Of particular note was the 40% RETRACEMENT in 1976 from prices achieved in 1974 ($180 - $110) only to double to $240 P/Oz in 78' and we are all aware of the "blow off top" in Jan 1980.
Enjoy the downside momentum, but in my opinion it would be wise to ignore the "noise" and see this move for what it really is - a classic shakedown in an ongoing bull-market for PM's - Its a big and scary one with more downside to come, but do not for one minute doubt where this market will likely be over time. In my view, multiples of where we are now.
