by JAMAL HARWOOD
There is a massive battle going on between Gold bulls (those expecting the market to rise) and bears (those expecting the market to decline). This is being fought over “fundamental analysis” with key issues: the decline of paper currencies, further QE (UK announced this week and others possible), European debt crisis, ongoing western financial crisis, and the failure of western economies to recover – all bullish factors for gold.
Additionally stock markets are again in freefall thereby forcing the sale of gold to raise cash against margin calls (a fundamental bearish factor). Against this many “technical analysis” factors indicate the gold market is now in decline (double top formation done, recent strong decline below 10 and 20 day moving average, short term trend down, major correction) all bearish versus (long term trend still strongly up, above 200 day moving average, the correction being similar to 2008 correction, and not yet near the inflation adjusted top of the 1980?s) all bullish points.