The world is collapsing. Greece is doing everything it can to just get one more day. The Chinese market is imploding. Now the US market is starting to feel the downside pressure. So what happens when the world is falling to pieces? Common wisdom says that money flocks to gold. From what I see though, not so much.
Gold's weekly chart tells a very different story than the common wisdom would have you believe. The price of gold has basically moved sideways in a tightening consolidation since mid 2013. This is after a hard fall from the peak in 2011.
But since things have heated up in the world over the last 2 months, not only has gold not benefited, it has started to break lower. A technical examination of the chart shows a 4th touch at the support area around 1140. The momentum indicators are in the bearish range and pointing lower as well. As the price is falling to support, the Bollinger Bands® are also opening to allow it to fall further.
Below lies some prior support areas you can see on the left side of the chart at 1100 and 1043 followed by 1000 and 960. The current price action also suggests some targets below. First is 850 on the break of a descending triangle. This also works as a Measured Move lower from the base in 2011 to 2012 down to the current base projected lower.
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