When you build the perfect storm, there can be no surprise when it hits, the phrase on the chart is from FIELD OF DREAMS.
I had been telling people a huge drop would come out of the blue in this GOLD market, and it has happened. How did I know this? The commercials have been heavily short, the most in history. This huge run up has been driven by speculators and not insiders. When this happens, often the rug is pulled out of the blue like this. In a situation like this we could see $100 drop or more in a very short period, because of panic selling by the small individuals who now realize they have once again been sold a bill of goods.
I have no idea if we will get a drop of that magnitude, just that it could very easily happen because the fundamentals favor it. You do not have real insiders buying at this point to help prop up a drop. The ideal seasonal high is due in January, but when you get conditions like this, you have to act when they develop. Things do not always line up perfectly with the seasonals.