If you have noted gold appears to be reliant on Dow as of late (note prior to prev night Dow had put in evening star pattern). Once backed off from 640 top of resistance of triangle shorted LHG + NCM (long IBR a keeper). My interpretation is that markets are fearing US recession. If property prices fall a depression is not an impossibility. Problem for gold initially under this scenario is there will be a liquidity crunch, and unlike the 1970s most people are heavily debt laden. There will simply be no liquidity to drive gold prices up. The liquidity will come after 6-12 mths via the printing of fiat cash. This is the time when gold will go ballistic. Take note gold is forming a descending triangle if 600 breaks 540 will be retested.
