by Clive Maund
Gold Seek
I got pelted with garbage after the last (bearish) update was posted on the 1st because right after, gold zoomed back up following a $75.80 plunge, as we can see on its latest 3-month chart below, and this “swansong rally” even made it to a marginal new high, but it did not negate the bearish implications of the late February plunge. In the last update it was written “This kind of massive smackdown, which took the gold price straight down to its rising 50-day moving average, is viewed as a clear “shot across the bows” and is interpreted as meaning Big Trouble.” The call was correct as demonstrated by last week’s steep plunge back to the rising 200-day moving average, and by Precious Metals stocks cratering last week in a dramatic manner. Last week’s developments, especially in stocks, means that gold has been “holed below the water line” and should now get taken down hard along with silver as margin call afflicted investors dump everything indiscriminately over the side.