As I mentioned in previous posts....

I like to follow the pattern of volume. Especially when there is a sharp decline or a spike in the price of a stock or, in this case, in the price of gold (click on the chart to enlarge it and see also my previous posts on the subject).

The pattern is clear on the chart. The last spike was almost telegraphed by the great euphoria about gold and its store of value concept. I personally think it is nonsense.

Gold behaves like all other commodities. Oil, copper,....all the commodity complex was weak. Gold had to follow, trading volume was an important indicator of things to come.

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
Ranked Top Market Timer in 2009 and 2010 by Timer Digest

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