Gold opened the week in Asia with a bang – down nearly $44 at the low of $1083. This is right on target for our Panic Cycle this week. Gold is sharply declining, it will break the $1,000 level, and then everyone will start to look for $600–$700 area.
We can see our Energy Models negative turn, so a washout to the downside was in order. Everything remains on target as we move closer to the Benchmark targets. Keep in mind that many will begin to refuse to sell, while others will use this to claim prices should rally, as they are doing with the U.S. Mint after stopping the production of silver Eagles. This is by no means BULLISH – it will have no impact upon price.
