Gold in USD terms is an interesting one at this point of time. The above is the monthly chart of gold from the lows of 2001. Gold has broken below the trend line of 13 years( a fibonacci) which is a huge sign of weakness in gold and we can expect a healthy down fall in gold in coming weeks or months unless and other wise gold rises above trend line. The 100 month EMA is at 1173 which has been offering support to gold for last 15 months this time also in might offer the same but as this is the third attempt we can expect it to be taken out. Any break of same may prove to be catastrophe for gold as it has all possible chances of moving below USD1000 so we have to keep a close watch on the same. So brace for bear activity in Gold.

M.Mahiidar

Enjoying Life

Trend is Friend.