If this is the Gold Bottom, it’s Totally Random

When I look at the chart of gold, I ask myself like everyone else, “Is this the bottom?” And sure, no one knows for sure. But I’ll tell you this: if it is the bottom, it’s coming at a completely random level. So it’s not something I’d be betting on.

Here is a weekly bar chart of Gold futures. Look at the breakdown below this descending triangle that formed after the big April sell-off. The measured move of that pattern takes you lower. And the Fibonacci Retracements off the 2008 lows also take you lower.

6-26-13 gc

So is this the bottom in precious metals? Possibly. But I really doubt it….

Those 1150s seem to be a logical area. We’ve seen support there in the past. And the measured moves from the recent triangle, as well as the big 2011-2013 topping pattern take you into that area. I personally would be much more interested down there.


Tags: $GC_F $GLD