Why is gold going down?

This market has surprised many people as they were expecting gold to continue up to the $2000 level without any problems. Normally when you have such the unanimous viewpoint, the markets tend to go the other way. The reason for this is that everyone who is bullish is normally long the market. The current breakdown in the yellow metal has not changed the overall longer-term bullish trend for this market.

The question is, how far will the gold move to the downside, and where is support? In this new video we point out some very positive signs as well as some troubling aspects that we see in this market.

This is a video I think you will get a lot out of and as always you are free to watch it without registration. I hope that you have the time to comment on our blog about this video and share your thoughts on the gold market.

All the best,
Adam Hewison
President of INO.com
Co-founder of MarketClub

7 thoughts on “Why is gold going down?

  1. When gold starts to rise again the question is will be there another drop to the new support line, i assume at where gold previously dropped from?

  2. Obviously this is an old thread, and so far the author has been proven right -- the bullish case for gold has certainly held water for the last several months, and pull-backs have been short lived. The gold market is showing overly bullish sentiment once again, so we could be due for another little correction here before resuming the long term upward rise.

  3. Great post and video. Just as an aside to anyone gold and wanting to get to grips with the market volatility, I'd recommend a spread betting, upon which you can test the water with thousands of virtual pounds/dollars.

  4. When will you move to iPhone/iPad format, so we can watch your video's not only on pc

    1. Ann,

      I have good news for you, you can actually watch our videos on YouTube. We have just finished our YouTube website and have not officially announced it so your timing is perfect. Here is the web address: http://www.youtube.com/marketclub

      You can play our videos on your iPad and also on your iPhone. We are pretty happy with the way it turned out so be sure to tell all your friends who are interested in the markets to tune in either to our blog or to our YouTube website.

      All the best,

  5. Adam, from a previous video on gold you talked about the "energy fields" that go on in this market for roughly 16-17 months in between breakouts. It seemed as if gold was breaking out of that pattern when it recently topped the highs it made in December. Now it seems that breakout was a fluke and it will trade sideways in a new energy field until Spring of 2011, with the 1000 level of the previous breakout's high being ultimate support. What are your thoughts?

    1. Erik,

      Thank you for your feedback.

      In the past we have discussed energy fields in gold and in other markets. In the gold market the move to new highs earlier this year was out of character with the rhythm of this market for the past four years. At the moment we still see the longer-term picture as bullish however it is definitely mixed with the weekly trade triangles pointing down while the monthly remain firmly in the up position.

      I am going to wait until we have a confirmation of the weekly trade triangle moving to a green position. The gold market has been extremely volatile of late and it does not appear to be settling down any time soon. I believe the word is caution and trade lightly until we see a really strong trend.

      All the best,

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