BEARISH GOLD

Gold did a double top failure last Friday at $1068.50
Today gold broke the hourly 50 SMA.
And at 10 AM did a failure of the hourly 50 SMA on a rally retest of the average, that took it to new week lows.
The daily charts broke the 20 SMA.

I am bearish gold now.

Gold broke the MOBO bands to the down side on the daily, four hour, and hourly charts Monday.
Tuesday should/could see a bounce.
Opportunities to short gold, or exit any longs in the physical metal, or in the equities will be in this bounce.
ABX, NEM, GG, and others broke their daily 50 SMA.

Rally resistance levels are now at $1046 and $1054 for the metal and back to the 50 SMA for the stocks.
My new low targets are now in the $1007 to $1010 area. A break of that target would send us to the $975 target.

All this downside projection will only happen with a continued rally in the US$ that started mid-day today. Too many are on the short side of the US$ canoe… it is likely to flip the shorts out before going lower.

After this next major pullback in gold I see new market highs for gold, and the US$ dropping to the 72 -70 range.
Printing money has not stopped and will not stop. Hence my longer term outlook after our gold flush out of the late entry longs on gold, and the weak hands give up.


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