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