After gold's breakdown on Sunday July 20th, we have seen an avalanche of negative commentaries. Admittedly, from a chart perspective the breakdown does not bode well. We have to get that straight. The technical breakdown is going to lead the price of gold in US dollar terms towards $1,000 /oz, potentially lower.

But if we compare this breakdown in gold with the one in April and June of 2013, we would say the one from last week is a small dip on the long term chart while the one of 2013 was a real collapse. However, the negativity that was triggered by the latest small price drop is much stronger.

Consider the following mainstream media headlines of the last week:

From those articles, we selected the three most impressive quotes:

News headlines are a great way to gauge sentiment. And they are simply telling a ‘hate story' currently.

In particular, that one last quote of the ones above is very interesting: “no one wants it.” Really? Nobody? As in, “this time must be different?”

Let's face it. Markets can become extreme, but markets do not remain endlessly at extreme levels. They also do not trade endlessly in one and the same direction.