"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat
Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput
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Gold Holding near Secondary Support Level, but is struggling
As you can see on this shorter term chart, gold has broken the nice STAIR-STEPPING PATTERN that had been in plce since the middle of August. The overhead resistance at $1,800 has proven to be too formidable for the bulls to overcome and thus the market has set back due to a combination of both stale long liquidation and fresh shorting against this resistance line.
The market is probing lower looking to see at what price level more demand, especially on the physical market, can be generated. It is important that the line marked, "SECONDARY SUPPORT" does not give way. If it does, gold will drop to $1700 - $1690 and possible as low as $1680 before temporarily stabilizing.
There is some concern that the slower growth in China (they are still humming along at over 7% but well off the previous pace) will curtail some physical gold demand from that quarter. Also, from time to time it appears the woes in Euroland continue to make traders nervous about piling on the risk trades any further.
The larger trend continues against a backdrop of easy money policies meaning low interest rates and Quantitative Easing/Bond Buying programs and some government stimulus measures over in China. That does not look to change for the foreseeable future. This will keep the primary trend in gold intact.
Dan
ReplyDeleteI wondering if you have any comments/reaction to the 3 posts on KWN yesterday of comments by the London Trader?
looks like from vigorous selling in juniors today that they / TPTB are looking to bring gold lower near term
ReplyDeleteHi Dan,
ReplyDelete-any views on the recent activity in the silver vaults over at the COMEX (-7 mil).
Looks like anyone who thinks and voices opinions contrary to what's known as "the silver community" is consider a "shill". Take a look:
ReplyDeleteThe News UNIT
Don't miss the latest Ann Barnhardt UPDATE posted at:
ReplyDeleteThe News UNIT