Gold appears to be forming a triangle pattern before another leg down. It looks to me like the triangle is complete or extremely close to it. I will be purchasing some put options on GLD which is an ETF that tracks gold and has recently become optionable. From looking at the time length of the downward moves in the triangle as well as the time of the first leg down off the March high, I would anticipate a move lasting about 3 weeks and moving down to the 78-80 dollar range. I have included a link to a chart in the next post.
If gold is declining, does that have implications that the inflationary period of rising commodity prices and expanding credit (currency devaluation) is ending?
Pete
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