Gold has opened the week in Asia with a bang – down nearly $44 at the low of $1083. This has come right on target for our Panic Cycle this week. Gold is headed sharply lower and it will break the $1,000 level and everyone will then start to look for $600-700 area.
We can see our Energy Models turned negative so a washout to the downside was in order. Everything remains on target as we move closer to the Benchmark targets. Keep in mind that many will start to refuse to sell and others will use this to claim prices should rally, as they are doing with the US Mint stopping the production of silver Eagles. This is by no means BULLISH – it will have no impact upon price.