I hope traders of paper gold learned enough lesson today to switch their allegiance from paper to physical metal. I decided that being a play thing for the short in paper gold was tiresome and dare I say lame. I laugh when I see days like today and how transparent the short of gold is and weak kneed the paper long is. The longs like to come to a gunfight with a pea shooter while the short brings the Howitzer. The paper long is nothing but cheap nutrition for the infinitely capitalized and infinitely liquid short.
What can I say about the beat down that hasn’t been said so many times in the last 10 years? Jim Sinclair has warned of $100 swing days and the futility of trading. Maybe today was the big roll out day for the “new normal”. Price was pounded down below support 1716. All the longer moving averages are bunched up and providing support between 1670 and 1700. I personally want to see another 100 dollar smack down to below 1600. If major support doesn’t hold at 1670, I think we have an excellent chance of seeing sub-1600 levels. I will be buying as much physical as possible below $1600. Resistance is just shy of 1800. That level needed to hold and the TPTB sent a message loud and clear, Nobody makes it past $1800. If 1800 falls a quick trip to 1920 follows.
The weekly chart shows price at support provided by the 18 week moving average. RSI is just above support near 50. 1600 represents the bottom of the channel and screams “buy me”, I will comply if given that opportunity. Thank you Big Ben and all you weak paper longs…love and kisses!!!!!