Monday, March 30, 2009

Gold Breaking Support and Starting to Crack; March 30, 2009


Gold closed below the ascending trendline (see daily gold chart above) suggesting that the metal is about to cascade lower. It's been treading this support level, along with the $890 level, for months and once it gives way for certain, it should shoot to the $890 level in a hurry. Like I said before, the $890 level has been tested several times so the bullish support has been severely eroded already, so I would not be surprised if $890 gives way like warm butter when it's hit.

$850 is my initial gold target, but the potential is much much greater into the $650 area.

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