Tuesday, April 21, 2009

Gold Should Decline Now to a New Low Beneath $865; April 21, 2009

Gold rallied this morning but sold off sharply in the afternoon in what appears to be an impulsive decline. It fits well with the wave count in that it would have completed a wave 4 (see above 4 hour chart) because it was a flat choppy rally that reached the area of the previous wave iv extreme. I fully expect gold to fall to a new low in a wave 5 beneath $865 without trading above $897. The metal is currently trading at $885.

I am still short gold through bear option spread on the ETF (GLD) and shorting the GLD outright.

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