Gold Daily Chart: Resuming The Bearish Trend?

Gold did hit a bottom at $1160, but that was a pretty docile type of a bottom, just like all the others before it has been.  Bear markets do not end with a whimper, especially anything related to the commodities markets.  The people that say, stocks, gold, oil can’t crash together better check your history, as it sure happened in 1929-1932. It also happens in 2008 as everything except the US dollar got dragged down as well.  The common belief that gold is just in a bull market correction, do not understand that 2011 was a 30-year commodities mania peak. 2011 is a Cycle degree wave 3 top, which only happens once every 30 years ± 1 year.

This wave position came back from hibernation as we could be in a wave 1-2 rally in Minute degree. Do not underestimate the power for gold to move with great speed when it wants to, as these types of declines can also produce “Gaps” on the way down.  Any $142 drop would crash gold below $1047, which I consider would be a walk in the park for gold.

You can beat your head up against the wall if you try to inject fundamentals to explain every move gold makes. Fundamentals are lagging indicators, not leading indicators. They change like the wind because they ignore the biggest fundamentals of them all and that is “people”. There is a huge “fundamental generational shift in effect” as 10,000 Boomers have been retiring every day since 2011.

Also when Generation X hit the average age of 46, which is their peak spending years, it will reduce the “velocity of money” in the economy as well. Those are all “fundamentals” that nobody talks about but are critical to the future gold price and its large cycles.

This insane real-estate mania will also turn into a bust, which we know is happening just from lumbers futures ongoing price crash. Deflation is the real threat as T-Bonds will soar and the US dollar keeps pushing higher.

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