Gold Intraday Slump Review

I was hoping for a counter-rally move and we finally got one this morning.  Gold peaked last night at $1310 and then proceeded to implode. In order for the April bullish move to remain bullish, gold has to form a very corrective looking pattern before it retraces 100% or more.

The gold price slumping below $1281 would confirm that this April rally was just another bear market rally.  Time is the unknown factor as any move can be fast or slow.  If gold breaks out to a new low it might take until the end of April for this to happen but otherwise, we are at the mercy of the emotional crowd.

Running in and out of gold assets for safe-haven reasons hardly ever lasts very long as those are emotional moves, not logic moves.

Gold also ran into the 50-day MA line at the $1306 price level after which it turned and headed south.  The 200-day MA is at the $1250 price level which is a big drop, with no guarantee that it will get there.

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