OK so that is the daily picture. Unfortunately, the weekly doesn't look much better. We can see from this a similar picture on a different scale. Doesn't look pretty.
Finally I will give you the monthly to look at, which kinda puts things more in perspective for the "big picture". Although the daily and weekly look bad the overall trend is still intact for the monthly. The only thing that concerns me is the MACD which took a sharp turn down and looks like it could crossover. Something to keep an eye on because it could spell out a 2008 style decline.
Anyway, putting everything in perspective, we come up with the following conclusions...
-Europe is screwed. Any way you cut it, Greece gets kicked out, Germany leaves, the Euro splits into 2 different Euros, they suck it up and print money or they collectively default, it doesn't matter, the end result is the same=good for gold.
-We are next. The term "cleanest shirt in the laundry basket" has become popular. It's more like "least smelly public bathroom in Newark NJ." Make no mistake, those that are attacking Italy sending 10 year yields to beyond 7% will do the same for us when our time comes.
-The thing about printing money is this: once one country does it, others have to follow to maintain competitiveness. Britain has joined the party, Japan has been active in it as well. The Swiss have stated they will and upon such news as everyone shifted attention to investing in Norway, the Norwegians said in very plain terms "don't even think about it." Australia who is doing far better than any other western nation, has been lowering interest rates to preplan for a Europe disaster. We, the USA I mean, are the most notorious for printing money, and Europe, Germany be damned, will have no choice but to join in or risk an overall Euro default. It's a world wide race to see who can send our currencies to ZERO the fastest. Try and argue a point for me that proves that is not insanely bullish for gold... seriously, just try, I'd love to see it, I haven't laughed in a while.
All of this leads to conclusions that are wildly bullish for gold, which I might add, is for whatever reason, very much on sale. This is NOT the type of market you can try and chase momentum and price action in. This is a very simple "buy the dips, sell the rallies" type game. (and if I may add to that, "buy the dips, sell the rallies, and try to hold down your lunch in the mean time".) you have to buy VALUE, plain and simple. I will leave you with a quote from my grandfather when asked "how to make money in the market". His reply, "Buy a $20 stock for $10." That is value, and that is smart investing. Buy a $2000 oz for $1550. That is value and smart investing.
Till next time my friends, stay strong, and be careful out there. It's a Madhouse.