3rd December – Is this it for gold?

Gold bulls are getting massacred.

The market euphoria that has gripped the main boards and taken hold of the “all is well, bravo the Fed!” crowd has a nasty sting for any pragmatist who knows that a debt crisis cannot be solved by yet more debt. That the latter group will almost certainly be proven right in the long run will do little to cheer them if they are wiped out in the meantime. This could well prove to be the bitter irony of what is happening now. What was it Keynes said about the market remaining irrational longer than he could stay solvent?

Anyway, back to today and gold mining stocks and associated ETFs have been crushed under heavy volume selling, and the price of the yellow metal looks almost certain to retest its 52 week lows (note I said “almost”). If this happens and the decline continues then serious technical support looks well over $100 away.

 

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