360° Coverage : Breaking: Gold May Be On The Verge Of A Waterfall-Style Decline

10 Updates
Breaking: Gold May Be On The Verge Of A Waterfall-Style Decline
Photo Credit: Forbes Business

Breaking: Gold May Be On The Verge Of A Waterfall-Style Decline

Dec 19 2013, 4:47pm CST | by

In the past few hours, gold sliced right below the $1,200 support level that I showed earlier this month: Source: Finviz Though silver took a hit, it’s still above its $18 support, but it’s a fast-...

Filed under: news

 
 
 

32 weeks ago

Breaking: Gold May Be On The Verge Of A Waterfall-Style Decline

Dec 19 2013, 4:47pm CST | by

In the past few hours, gold sliced right below the $1,200 support level that I showed earlier this month:

Source: Finviz

Though silver took a hit, it’s still above its $18 support, but it’s a fast-moving market, so a break below this level can happen quickly:

Now that gold broke below its support level, another sharp decline – including what I call a “waterfall-style decline” – is looking increasingly likely. I suspect that another wave of selling may commence when the Asian precious metals trading session starts in a few hours from now (it’s Thursday afternoon in New York as I write this). If I was planning to short gold, I would make sure that I have a stop-loss order in place to exit the trade in case gold manages to rise back above the $1,200 level, creating a bear trap.

As I showed in my last gold and silver analysis, gold mining stocks experienced a serious technical breakdown in late-November, and I said that gold mining stocks have a tendency to lead the gold market. It looks like this indicator is on the verge of proving its worth once again, even though it is still early.

Source: Stockcharts.com

If gold’s technical breakdown fully plays out, the next support level (and thus price projection) is at $1,000, which is both the 2009 highs as well as a psychologically important round number, which matters a great deal in financial markets:

Why is gold dropping despite all of the central bank money printing in recent years? I have a very different take on this issue than most commentators: I believe that global central bank stimulus is creating what I call a Bubblecovery or a bubble-driven economic recovery that is fooling the whole world into becoming less fearful, which is reducing demand for gold as a safe-haven. I believe that the eventual ending of the Bubblecovery will cause another global economic crisis that will prove to be highly beneficial for gold, even though gold may have further downside in meantime.

As a reminder, if gold manages to break back above its $1,200 support level, I would no longer be inclined to hold a bearish short-term view on it.

Please follow me on Twitter, Google+ and like my Facebook page to keep up with the latest bubble news and my related commentary.

(Disclaimer: All information is provided for educational purposes only and should not be relied on for making any investment decisions.)

Source: Forbes Business

 
Update
10

7 weeks ago

RM47mil KWSG contributions still unclaimed

Jun 9 2014 7:54am CDT | Source: Business Times Malaysia

KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the Dewan Rakyat was tol ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
9

7 weeks ago

Gold shop lost almost RM1mil

Jun 9 2014 3:50am CDT | Source: Business Times Malaysia

KANGAR: A gold shop owner lost almost RM1 million after after the safe on in his shop was broken into by r ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
8

7 weeks ago

Motion to debate MAS losses in Dewan Rakyat rejected

Jun 9 2014 3:39am CDT | Source: Business Times Malaysia

KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was rejected by the Dewan Rak ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
7

7 weeks ago

MH370 Tragedy: Hisham: RM27.6 mil spent on 1st phase of SAR

Jun 9 2014 2:11am CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia spent some RM27.6 million in its first phase of the search operations for missing Malaysia Airline flight MH370, said Acting Transport Minis ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
6

7 weeks ago

9.1m litres of diesel seized in a month

Jun 8 2014 1:11am CDT | Source: Business Times Malaysia

PUTRAJAYA: The Domestic Trade, Cooperatives, and Consumerism ministry has seized some 9.1 million litres of diesel and property worth RM58 million since mounting ‘Operasi Diesel Selatan’ in the southern states l ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
5

7 weeks ago

Girl, 9, awarded RM2.78m compensation for medical negligence

Jun 6 2014 4:56am CDT | Source: Business Times Malaysia

KUALA LUMPUR: A nine-year-old girl who suffered brain damage during her birth at a government hospital was awarded over RM2.78 mi ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
4

7 weeks ago

Malaysia's total trade in April up 12pc

Jun 5 2014 11:52pm CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia's total trade in April 2014 rose by 12 per cent from a year ago to RM123.86 billion due to growing trading activities, International Trade and Industry Minister Datuk Seri Mustapa Mohamed sai ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

8 weeks ago

Works Ministry to spend RM20m for upgrading works at 50 accident black spots

Jun 4 2014 11:35pm CDT | Source: Business Times Malaysia

JOHOR BARU: The Works Ministry will implement upgrading works at 50 accident prone locations in the country that have been identified this year involving ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

8 weeks ago

Najib launches loan scheme for Ramadan traders

Jun 4 2014 10:24pm CDT | Source: Business Times Malaysia

PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today launches RM45 million Ramadan ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
1

8 weeks ago

Residents bring up objection against Kidex to Suhakam

Jun 4 2014 4:49am CDT | Source: Business Times Malaysia

PETALING JAYA: A group of 20 Petaling Jaya residents held a meeting with the Human Rights Commission of Malaysia (Suhakam) over their objection against the proposed RM2.2 billion Kinrara Damansara Skyway (Kidex) tod ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Now SEPA to facilitate euro payments
Brussels, Aug 1 (IANS) The European Commission said Thursday that the Single Euro Payments Area (SEPA) would become fully operational in all euro zone countries from Aug 1, 2014 onwards.
 
 
Ebola outbreak: $100 mn response plan in West Africa
Geneva, Aug 1 (IANS) The director-general of the World Health Organisation (WHO) and presidents of West African countries hit by the Ebola virus outbreak will Friday meet in Guinea to launch a new $100 million response plan.
 
 
OPEC daily basket price closes lower
Vienna, July 31 (IANS) The basket of 12 crude oils of the Organization of Petroleum Exporting Countries (OPEC) stood at $105.21 a barrel Wednesday, against $105.44 Tuesday, according to the OPEC Secretariat.
 
 
Ebola outbreak not a global threat: Report
London, July 31 (IANS) The deadly Ebola virus does not pose a global threat, a latest report has claimed, adding that as long as the virus continues to infect people in Liberia, Guinea and Sierra Leone, there is small risk of more long-distance export of the disease.
 
 
 

Latest from the Network

Kelly Osbourne sued by former landlord
Los Angeles, Aug 1 (IANS) Kelly Osbourne's former landlord has sued her by claimed that the singer caused damages worth $70,000 to his property after she let her dogs defecate all over the apartment. The "Fashion...
Read more on Celebrity Balla
 
Lana Del Rey says ex-boyfriend is 'unwell'
Lana Del Rey claims her ex-boyfriend Barrie-James O'Neill is ''unwell.'' The 'Summertime Sadness' hitmaker, who split from the Scottish musician in June after three years together, admits they were not a good match, as...
Read more on Celebrity Balla
 
Ryan Seacrest's pals concerned about his gilfriend
Ryan Seacrest's friends are allegedly worried his girlfriend might be a ''gold digger.'' The 'American Idol' host, 39, started dating 24-year-old fitness trainer Shayna Taylor last summer, but his close pals reportedly...
Read more on Celebrity Balla
 
27 killed in violence across Iraq
Baghdad, Aug 1 (IANS) At least 27 people were killed and as many injured in the violence witnessed in different parts of Iraq Thursday in the form of clashes and bomb attacks, police said. Four policemen were killed...
Read more on Politics Balla
 
Iran denies agreement on Arak, Fordow n-sites
Tehran, Aug 1 (IANS) Tehran and the six world powers have not made any agreement on Iran's heavy water nuclear power plant of Arak and the underground bunker of Fordow uranium enrichment establishment, a senior Iranian...
Read more on Politics Balla
 
Russia to host 'highest-level' FIFA World Cup
Moscow, Aug 1 (IANS) Russia vowed Thursday to hold its first FIFA World Cup in 2018 at the highest level possible. A working group from the "Russia-2018" organising committee has stayed in Brazil for the whole...
Read more on Sport Balla
 
Now SEPA to facilitate euro payments
Brussels, Aug 1 (IANS) The European Commission said Thursday that the Single Euro Payments Area (SEPA) would become fully operational in all euro zone countries from Aug 1, 2014 onwards. SEPA, the largest payments...
Read more on Business Balla
 
China lifts military controls delaying flights
Beijing, Aug 1 (IANS) China's civil aviation authority has decided to abort control measures from Friday in place for flights in the country's eastern, central and southern regions while a military exercise goes on in...
Read more on Politics Balla
 
China urges US not to interfere in sovereignty
Beijing, Aug 1 (IANS) China Thursday urged the US to stop interfering into Chinese sovereignty after the State Department voiced concern over indictment of a former college teacher named Ilham Tohti. Tohti was...
Read more on Politics Balla
 
Kelly Rowland is expecting a baby boy
Kelly Rowland has confirmed she is expecting a baby boy. The 33-year-old singer, who is married to her manager Tim Witherspoon, accidentally revealed the gender of their unborn baby while discussing all the gifts their...
Read more on Celebrity Balla