I agree that Gold was due to correct, however, I disagree that it was due to the Greece vote. Gold got above 1300 mark but could hang on and tested 1307 and then 1305 twice showing there was strong resistance there and (There was a short term triple top that formed on the daily chart), so it needed a reason for a short term correction.

I actually expected gold to pull back starting in the middle of last week (pre ECB announcement), PMI numbers on Friday, and the Sunday Greece vote. I posted this on the weekend show of the 17th, then again 19th and 20th. The news of the last week or so didn’t have to fundamentally makes sense, and there just had to be enough market volatility to give Gold a reason to correct. Gold started it’s correction on Thursday on the ECB and Draghi announcement right on cue and has continued correcting through Friday’s PMI and Sundays vote, exactly as expected.

I didn’t expect the Greece vote to cause gold to spike (yet), and while I am bullish on Gold long term for being the “un-currency” and not correlated to all the other currency madness, Cory made a good point that for over the last year or two, Gold has done the opposite of what fundamentally makes sense. As a result I quit fighting it and just started shorting Gold when highly expected news was reported, because it has tanked 80% of the time. It used to be in 2008-2011 that these were the exact same kind of announcements that made Gold scream higher. We are in the Seinfeld episode where you “do the opposite”.

The Swiss vote and the Canadian announcements were true Surprises and that is why Gold moved up so strong. All the news on the Euro, growth, and Greece has been factored in for a while so that is why the markets were Ho-Hum and gold fell.
However, I do think Gold is looking good into February, and expect the uptrend to begin by the end of this week and continue for 3-5 weeks to test 1323 and 1347, and just maybe 1382 before the March weakness causes it to correct.

The reasons that Gold was rising prior to this week still being in place fundamentally and mid-term technically, and people are finally starting to wake up to how insane the Currency Wars are getting, and how desperate all the central banks actions have been. It is interesting that Germany wanted more of it’s gold returned recently, just like a number of central banks have. This is the most telling vote of no confidence in the monetary system and is the floor under gold right now and the long term fundamental that has accelerated the last year or so.

Here is an excerpt from an interesting article posted on the Sovereign Investor:

Including the gold repatriated from Paris, Germany brought home 120 tons last year. And the Netherlands, meanwhile, removed 122.5 tons of gold — about one-fifth of their total gold stored overseas — from New York, bringing it back to Amsterdam.

So the message I’ve been writing about for a long time is now getting clearer: Governments simply do not trust the global, fiat monetary system any longer. Nor should you.

Germany is just the latest in a collection of governments that no longer want their gold held in U.S. and U.K. vaults, the resting places for much of the world’s sovereign gold since after World War II. Last year I wrote about how Austria suddenly decided that the British central bank in London maybe wasn’t the best place to keep their gold.

It doesn’t end there. France, Belgium, Austria, Ecuador, Finland, Switzerland, Venezuela, Romania and Poland: They’re all either talking about repatriating national gold or they’ve already done so. Some are clearly countries run by leaders with a populist agenda — to wit, Venezuela and Ecuador.

In my humble opinion Bird NO YET !

Do you see this current rise in gold as a bear market rally Bird? Do you think it is over?

HE,HE,HA,HA……………..come on bird………..you need some gold……, But, I do agree with you………..if you can only hold one thing at a time….and a trader…..Maybe………enjoy the day……………………………j……………..

Thanks for holding me to my work Peter but please wait until the week is over to call me wrong…

The universal we 😉

Globalist are in charge………..and it is not looking good for anybody……….