GOLD Weekly Chart Descending Triangle

Here is a continuing update of the gold descending triangle we have watched for the last few months. The last update was looking for the last move up to touch the top rail at 1650-ish, which has occurred, and now price has formed a perfect textbook descending triangle. A price collapse from 1575 would lead to (1925-1575 = 350; thus, 1575-350 = 1225) 1225.

The 65-week MA is a magnet line for gold price and even when it deviates away from this moving average it always comes back and in fact has overshot. This may help to mute the downside. The green lines show hte positive slope on the indicators which also provides hope that gold may be able to hold on. However, the descending triangle pattern is far too compelling. There is no reason to be in gold right now, especially with a 200 to 300 dollar potential drop on tap.  In a deflationary environment, gold can most defintely move lower. Cash is king in a deflationary world. Projection is for the descending triangle to play out in the months ahead with lower numbers for gold coming. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.