For a while it looked like gold was finally through its bear market…but not to be. All the signs are now bearish. Consider:
It has fallen away from multiple moving averages clustered at $1350 twice now
It cannot rise in the strongest month of the year
Its V shaped recoveryfrom the June low has now petered out like a droopy old man
It can’t rise with a shutdown of the US government
It can’t rise with an unresolved US debt ceiling two weeks away
It can’t rise with $85 billion of new money printed each month
It can’t rise with a falling dollar
It looks like we are on the way to the $1000-1100 area
It also looks Like we are seeing the first signs of a stock market roll over in the US
In theses circumstances cash is king until the vix reaches an extreme and then you dive in again
Kevin