As I had warned previously, the commercials were short the Gold Market, as it went above $700. Now that we have dropped over $100 per ounce, notice they have become buyers of this market.
We are in a free fall at this point, so do not just run out and catch the falling knife. In fact, we are on the verge of breaking the long term uptrend as I post this. However, if this trend on the weekly chart holds up, we need to look for a buying spot here.
We are going to need a rally, because a weekly close at this current price will break that uptrend. This simple view, shows the power of watching the insiders in these markets. Alot of people were extolling the virtues of buying gold at the top. This is something that plays out time and time again. Do not be suckered into this hype. Fools rush in where wise men fear to tread. There is no better recent example I can find than this chart of that tendency.