Another chart, this time the point and figure chart for the long term trend in gold. Notice 1600 is likely the lowest we will see. This trend line is the real deal and the noise of market interference is overwhelmed by the fundamental case for physical gold as the premier reserve asset.
While we seem to lose the occasional short-term battle, the war has been won only the perma-bears don’t know it yet. Still, it’s quite disturbing to the “good guys’ when it feels like you’re getting beaten up like it has since the “flash-crash” in gold several days ago. This morning’s drop to key support makes me feel like Paul Newman and wanting to call in the Hanson boys to turn things around.
Since 2004, the gold market has witnessed occasional sharp sell-offs but all of them held the long-term uptrend line. Currently, it’s just above $1,600. Like before, it shall take days or even weeks before the uptrend resumes but it shall or my name is not Reggie Dunlop.
Chart courtesy of http://www.the-privateer.com