Gold In Bearish Formation

Gold has been selling off since September when it hit $1900/oz. As we move from "growth slowing" to "growth stabilizing," both commodities and gold have continued to deflate. From a long-term perspective, we think the gold bubble has already popped. From a quantitative setup, gold is in a bearish formation; we’ll short gold (GLD) and gold miners (GDX) as long as our models tell us to do. Across our core risk management durations in Gold, here are the lines that matter to us most:

1.       Intermediate-term TREND resistance = 1699

2.       Long-term TAIL resistance = 1671

3.       Immediate-term TRADE resistance = 1665

Gold In Bearish Formation - gold