Heavy selling in paper has triggered a water fall decline that is seriously testing some very long term lows today, going back to gold's original ascent out of the cup and handle.
The selling in the related sectors such as the miners has been particularly brutal. As one of the paid pundits said today, 'They are clearing out the casual allocators.'
This is Street talk for skinning the little guy and the non-insider, the average, frightened investor.
Intraday gold tagged 1491.
I have gone back and marked the current chart with past support and resistance figures. Those are indicated on a segment of a chart from 2011 included below. The current chart will come out at the regular time.
Watch silver for an indication of a subsidence in selling.
Don't even ask, because I will not tell you when to sell or to buy. At most I may occasionally give some indication of what I am thinking.
And today I am thinking that this is a major test of the bull market by some very determined hedge funds and bullion banks who are overpowering the real physical markets. And they are doing so almost fearlessly because they know that the punishments, if any, are a minimal share of the profits. And they most likely have the approval of the Anglo-American banking establishment.
If you believe that the monied interests will only apply their financial repression to the weak, the disabled, the elderly, the poor, and immigrants you are kidding yourself, and falling for the oldest ruse in the book.
If you wish to do something, support the efforts for reforming the financial system.