I agree somewhat, we have the jawboning that qe will end to contend with though. They will need to create a deflationary scare as is happening the last 6 weeks so that people beg for qe3 as at this time there is not alot of sympathy yet to print more from the public. They will let the markets slide until people beg for it. During this time gol;d and silver wil be sold off and naked shorted to get them as low as possible before qe is announced or done behind the scenes. Once people realize the economy will go into a deep recession without qe3 and 4 and 5 gold and commoditieswill finally reach the stage we have been waiting for.

Option expiry next week and you can see that we are headed down, if you know where the puts and calls are and where they are most concentrated you can make a bundle and call the bottom pretty easily. Under normal circumstances the prices recover 2 days after expiry but i think they put a bigger hit here on gold if possible.

Look for more deflation jawboning to set up people to beg for more stimulis but look for gold lower before it starts. WEe go down much more from here and we will consolidate for a month or 6 weeks to recover the chart damage. This is what certain entities are trying to print on the charts. We need to be back over 1520 or we are range bound at lower levels barring a black swan event, the black swans are beginning to circle though.