Gold's Final Curtain Before Reaching Bottom

New York (Aug 10)  Interesting action in gold overnight -- the equities were selling off hard and so was gold. This is one of the reasons gold is not a hedge against the equity market; it’s just a hard asset. One would have thought that based on the pounding gold has taken, it would be spiking higher, but no, the sellers are still the strong hands.

There will be a point and time when gold becomes loved again; when and from what price are to be determined. All signs point to a break below $1,200 and a test of at least $1,180, which could be the final curtain.

For all gold investors and those who are looking to buy more, the best action from here would be a blow-off bottom. A blow-off when price and time are disregarded is the only way to shake out the last of the bottom pickers and let gold finally make a bottom. The current action is ugly and slow, which has not allowed gold to make its bottom.

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