The giant sinkhole in gold prices keeps yawning wider. Since kicking into low-gear on September 22, gold prices have plunged 9% in their steepest three-day drop in 28 years.
On September 23, gold endured a never-before-seen $120/day intraday wipeout.
Needless to say, falling right alongside those markets whose declines it's meant to shield against puts a dent into gold's reputation as a "disaster hedge" and "stock-guard." Writes the FT:
"Investor confidence has now been shaken. Gold, touted as the ultimate safe haven asset was supposed to rise in a crisis and yet in the past four days, its behavior has mirrored that of the riskier assets."
"...all the necessary ingredients are in place for a key top. An important week ahead, stay close to the daily update."
September 21 update:
"If bearish, the late selloff should continue and very soon lead to the recent lows at 1769 and 1762 being taken out."
September 22 update:
"Prices should keep accelerating[lower] in a third wave, no excuses."
September 23 update:
"...a third wave portends lower prices ahead. The 200-day Moving Average is rising at 1525 [$1,525/oz]... it would be no surprise if it's now time to go there."
On September 26, gold fell to $1533, just 8 points away from the $1525 target.
Now, the latest Metals Specialty Service updates tell you if and when gold's sinkhole might be closing up. Get the complete details on your screen in minutes >>
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