On Monday, June 23, gold prices dropped like a lead balloon… tied to the end of a falling meteorite in a $30 per ounce slide to fresh, one-week lows.
It’s the kind of move where Seeing it coming from miles away AND Seeing it coming at you while ankle deep in wet cement -- makes ALL the difference. Case in point, the latter scenario:
On Friday, June 20, gold prices soared to their highest level in three weeks. And, according to the mainstream experts, a “perfect storm” of fundamentals was brewing to put the bull back in bullion; namely: “A deteriorating global economy,” a weaker dollar, the Dow Jones Industrial Average dropping below 12,000 for the first time since March, soaring oil prices, and a 10% decrease in South African gold production.
“Given the global implications of inflation,” began a June 20 Forbes, “We continue to expect investors to be drawn toward gold.”
(Bullish Fundamentals = $30 Drop in Gold? On June 20, Elliott Wave International’s Metals Specialty Service gave the “Bears the benefit of the doubt” and increased the odds for a major “breakdown.” Click here for up-to-the-minute GOLD analysis on all time frames.)
Now for scenario “A,” as in Alert to the coming reversal in gold prices BEFORE their crash landing: the June 20 Metals Specialty Service' “Daily” Gold Outlook. Here, EWI’s precious & industrial metals specialist Mike Drakulich raised the trend change alert level to RED and wrote:
“From my viewpoint, it’s ‘accelerate or die’ time in gold. When we get the type of 300-minute RSI (Relative Strength Index) pattern in the chart below [Reprinted below for your viewing pleasure] with prices resting just above the key 50-day MA (Moving Average), something simply ‘has to give’ in a big way.”
Alongside his written commentary and labeled close-ups, Mike also presented a short but riveting Video update to reinforce the urgency of his gold outlook. Little over two minutes in length, this live, interactive clip provided a three-dimensional look into the internal measures of Gold’s near-term strength. In Mike’s own excited voice: “I think we’re are finally, finally at a make-or-break point in gold… If it’s bearish, I think we are going to accelerate sharply lower.”
The June 23 drop-off speaks for itself.
(Editor’s Note: Don't miss the latest, June 23 Video Update on Gold posted inside Metals Specialty Service right now. Learn More)