Gold Giveback

Now who can you turn to
When it's all black and white
And the winners are losers
You see it every night
--Bryan Adams

It appears that the widely anticipated correction in gold has arrived. The short term parabolic rise in the Gold ETF (GLD) was snapped last Friday on big volume with some follow thru today.

How this plays out, of course, is anybody's guess. Nervous trader types sitting on gains will likely eye the 50 day moving average (currently at GLD 107) as one reference point. Then comes the breakout points at 104 and the big enchilada GLD 100.

Just as higher prices encourage buying, lower prices will drive more selling.

I continue to sense lower prices are in the cards, but my feel has been wrong as rain for months.

position in gold