by Alasdair MacLeod
This week saw heavy falls for precious metals, with gold losing $79 from last Friday’s close to trade at $1871 in early morning UK time today, and silver was hammered $3.65 to $23.14 over the same period.
Gold has crashed through its 55-day moving average, as the next chart illustrates.
Technical analysts were waiting to see whether the pattern since early-August was a flag or a three-legged correction; what followers of Elliott waves would term an A-B-C, with the C-leg in a Fibonacci proportion to the A-leg. It looks like the Elliott wavers have it. In any event, the bears are in charge this week.
Times like these are uncomfortable for ordinary investors. But they will be less so for those whose interest is in hoarding some sound money against the day when fiat currencies issued by the state fail, because day-to-day markets are irrelevant.