Gold’s uptrend is over. Short could be the contrarian trade for 2013

We can see in the weekly chart below that the Gold price has now dropped below a very important & long-term rising trend line. The yellow metal has largely been contained in a trading range this year between $1540 and $1800/oz. Should the bottom of that range be violated, then gold would be in serious technical trouble…

A serious retracement is now long overdue for Gold and given the supposed fundamental supports of renewed global QE and “fiscal cliff” worries that one would expect to pump the price higher having absolutely no effect, we expect 2013 to be a difficult year for the metal and anticipate a move down towards $1200oz as the year progresses. 

If you’d like to read more about the reasoning behind our bearish stance in a special Commodity Corner section in the New Year edition of our magazine then be sure to register on the right to receive it for free when released next week.