Gold Market Update

By: Clive Maund | Wed, Jun 14, 2006
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Gold plunged today as the steep but orderly decline from a "Matterhorn" top gave way to a stampede for the exits as blind panic set in - normally a symptom of a bottom. The "Matterhorn" top is so called because it involves a market that ascends in a steep uptrend, then without any kind of pause to mark out a normal top distribution area, it goes into a steep decline that more or less mirrors the ascent that preceded it. The Matterhorn top is, of course, most familiar to Swiss investors.

Despite the plethora of pundits reading "the last rites" for the dollar, it did as we expected and broke higher from its base area. This development really put the boot into the Precious Metals - so much for those who loftily proclaimed that gold had "broken free from its inverse relationship with the dollar" - how can it break free of the currency it is priced in? - the notion is absurd.

 


 

Clive Maund

Author: Clive Maund

Clive Maund,
CliveMaund.com

The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maunds opinions are his own, and are not a recommendation or an offer to buy or sell securities. No responsibility can be accepted for losses that may result as a consequence of trading on the basis of this analysis.

Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications.

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