Submitted by Bill Holter:
Previously Gold would be “pushed” down and held there. Now, the price gets knocked down but it can’t be kept down, and as the saying goes “what won’t go down…will go up”. We have held in tough this week (so far) and I think that next week we should see a move above the $1,600 level which will finally mark a turn in “sentiment”. You see, it is not so much the “price” that the cartel worries about. If it were, $1,500-$1,600 Gold would surely be something to worry about! No, it is the “sentiment”. When “bad stuff” in reality is occurring behind the scenes, metals “sentiment” must be destroyed because it is the ONLY investment with an “exit sign” over the door. These “doors” must be mentally locked or “confidence” in a system that only has “confidence” holding it together will be lost. Once turned, in my opinion the metals will put in rallies in both percentage and actual Dollars unlike anything seen so far. Hang in there, the action is about to astound!
I mentioned last Friday that I thought it was an important day. We traded down to the $1,560 level in Gold which was the 3rd or 4th time. At the time we were down $18 or so and again near that $1,560 level, I thought that a turnaround from there would begin to solidify the bottom process. We did in fact get a positive close (albeit only .60 cents) and have chopped this week between $1,575 and $1,600. This has been the longest correction “time wise” since the beginning of the bull market back in 2001 and has taken sentiment to levels only seen (if even then) back in 2008.