Today, the price of gold for December delivery dropped $101 an ounce, finishing today at $1,639.80 an ounce.
Many factors are being blamed for this with the latest being the strength of the US dollar.
In case you’re wondering, gold has lost almost 10% of its value over the past two days, even with an pathetic stock market.
We think you’re looking at a classical “run up and crash” scenario with gold. Just look at any 5 year chart and you’ll see the meteoric rise in price, along with a dramatic burst upwards, and then a “pop” as another bubble breaks.
The chart is definitely broken and gold bugs should take care. If they are lucky, they’ll find support in the $1500-$1600 range.
Gold is a hedge, but you can’t eat it. The buyers will dry up as we head into recession 2.0.
If gold breaks through $1500, it could be $900 an ounce in no time.
I see gold below $900 in less than one month.