Gold Breaks Long Term Trend Line

The previous post on gold pointed out that gold fell right to a long term uptrend line. Since then, as the chart below demonstrates, gold broke down through this line. This suggests one should expect more downward pressure in the near term.

Gold bugs will suggest this is a buying opportunity as they all believe gold is going to one million, sarcasm intended.

Weather gold goes higher in the long run or not, it should be clear that there is a definite change in tenor for the metal for now.

So how does one trade this? Shorting rallies using your favorite tools: fibonacci retracements, trend lines, etc. Having been distracted early last week, I missed the break of the trend line, so I shorted silver Friday, perhaps a little late, but I am up in the trade. Which reminds me, I want to give a shout out to the fellow I met at the Reagan Library last week who suggested in line at the gift store that silver was a great buy at $30. Ride it out, friend.