Gold Bugs warn of a bear market

Silver is testing long-term support at $15/ounce. Breach is likely, with 13-week Twiggs Momentum peaking below zero, indicating continuation of the down-trend.

Silver

Gold is similarly testing primary support at $1140/ounce. 13-Week Twiggs Momentum also peaked below zero, suggesting continuation of the down-trend. Breach of support would offer a target of $1000*.

Spot Gold

* Target calculation: 1200 – ( 1400 – 1200 ) = 1000

Stocks of major producers like Barrick Gold are also testing primary support. 13-week Twiggs Money Flow below zero indicates a primary down-trend.

Barrick Gold

The Gold Bugs Index, representing un-hedged gold stocks, has already departed. Breach of the band of primary support between 150 and 155 warns of a bear market for gold.

Gold Bugs Index

3 thoughts on “Gold Bugs warn of a bear market

  1. Jay Towner says:

    Colin, no doubt most of the financial market charts are in a down channel..this has me of the belief (was going to say worried,but I’m out of the markets,full stop) that we are entering the endgame many have warned…and I’m not of the opinion that the greenback will be the bullback in a bearmarket..as you commented on a prior comment re:gold price..we are entering a deflationary period..I agree with that summation..I have one compelling question…and it is this..if we are indeed a 40 year credit based expansion/correction..will the $US be the kingpin this time ? Initially maybe..gold has had a fibonacci 50% correction…. a 66% will take it below $1,000…and this was predictable once the 1900 top was reached on a parabolic move..my guess is a gold price below $1,000 will be a false break..and a new bull will be borne..however..I cannot say the same about any other financial medium or market in the world..I take your point (previous post response)..that gold and silver are subjected to the deflationary price discovery..does this entitle the $USD to inflated value,which it does not deserve,although will enjoy whilst the finacial family is peering into the volcano of economic destruction..at some point..gold will be valued for what it is..which is a damn sight better than greenbacks…I’m tempted to load up on PC’s..thou I feel you may be right and the 66% (broadly) fibbonacci will take it under US$1,000.00..although..at some point in the not too distant future..I feel the price of gold in USD will become irrelevant.cheers,Jay.

    • ColinTwiggs says:

      Thanks Jay,
      There is no endgame. History shows the market is more like a hamster wheel: speeds up, slows down, but always forward as technology and productivity advance. Gold is merely portable wealth. Price is determined by the fear factor: inflation and (far worse) collapse of the fiat monetary system. Inflation is likely to remain low and, despite a few wobbles, chances of a collapse of the financial system are remote. Which means gold below $1000 and the dollar remains the best horse in the knacker’s yard.

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