Gold Price Down, Gold Bugs Up

By Peter Brimelow

Looks like the gold bugs had reason to be wary when gold broke through $1000. But now it’s back down, they’re not particularly worried.

When I last looked, Australia’s “The Privateer” Web site was calling for a confirmation close around $1,015 on its magnificent long-term U.S. dollar 5-times-3 point and figure chart —

It got it. Then, however, although every chartist I follow was screaming, “Breakout!” gold churned for several days before slumping some $25.00 late last week. Spot gold closed Friday below $1,000 at $990.70.

Most shorter-term charts now have an ominous “head and shoulders” top appearance. Even The Privateer’s long term chart has slipped back into formation and looks sad.

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