Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
CATHY WOOD ARK GARBAGE ARK Funds Heading for 90% STOCK CRASH! - 22nd Jan 22
Gold Is the Belle of the Ball. Will Its Dance Turn Bearish? - 22nd Jan 22
Best Neighborhoods to Buy Real Estate in San Diego - 22nd Jan 22
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22
How to Profit from 2022’s Biggest Trend Reversal - 11th Jan 22
Stock Market Sentiment Speaks: Are We Ready To Drop To 4400SPX? - 11th Jan 22
What's the Role of an Affiliate Marketer? - 11th Jan 22
Essential Things To Know Before You Set Up A Limited Liability Company - 11th Jan 22
Fiscal and Monetary Cliffs Have Arrived - 10th Jan 22
The Meteoric Rise of Investing in Trading Cards - 10th Jan 22
IBM The REAL Quantum Metaverse STOCK! - 9th Jan 22
WARNING Failing NVME2 M2 SSD Drives Can Prevent Systems From Booting - Corsair MP600 - 9th Jan 22
The Fed’s inflated cake and a ‘quant’ of history - 9th Jan 22
NVME M2 SSD FAILURE WARNING Signs - Corsair MP600 1tb Drive - 9th Jan 22
Meadowhall Sheffield Christmas Lights 2021 Shopping - Before the Switch on - 9th Jan 22
How Does Insurance Work In Europe? Find Out Here - 9th Jan 22
Effect of Deflation On The Gold Price - 7th Jan 22
Stock Market 2022 Requires Different Strategies For Traders/Investors - 7th Jan 22
Old Man Winter Will Stimulate Natural Gas and Heating Oil Demand - 7th Jan 22
Is The Lazy Stock Market Bull Strategy Worth Considering? - 7th Jan 22
What Elliott Waves Show for Asia Pacific Stock and Financial Markets 2022 - 6th Jan 2022
Why You Should Register Your Company - 6th Jan 2022
4 Ways to Invest in Silver for 2022 - 6th Jan 2022
UNITY (U) - Metaverse Stock Analysis Investing for 2022 and Beyond - 5th Jan 2022
Stock Market Staving Off Risk-Off - 5th Jan 2022
Gold and Silver Still Hungover After New Year’s Eve - 5th Jan 2022
S&P 500 In an Uncharted Territory, But Is Sky the Limit? - 5th Jan 2022

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold and Dogma

Commodities / Gold and Silver 2012 Jan 08, 2012 - 08:32 AM GMT

By: Brian_Bloom


Best Financial Markets Analysis ArticleSome analysts believe that gold has bottomed . I think they may be missing something important.  The global financial game may have changed because Europe is being seen as more of a basket case than the US

Yes, gold was oversold and needed to bounce up. The problem flows from the first two charts below (courtesy

First, gold is in a bear trend and the upward technical reaction seems to be stalling at $1630. There is still a prevailing bearish target of $1370. Of course this might change – which is why we have to look beyond one chart.

 Second, whilst the US Dollar is also in a bear trend it gave a buy signal on December 13th, with an upside target of between 87 and 94; and with both targets being above the descending red trend line



Technically, the US Dollar has bottomed. The less sensitive 3% X 3 box reversal chart of the US dollar below shows a “double bottom” at 73.11.  If the index rises above 89.9 (hasn’t happened yet and may not happen) then this will  represent hard evidence that we will be facing a new ball game

The issue seems to me to be that gold is losing its appeal as a currency of last resort relative to the US Dollar

The goldollar index (Gold X USD Index) appears to be trading in a (bearish) descending right-angled triangle (chart courtesy

Also, when you look at the chart of gold divided by the USD index you see that gold has actually given a sell signal relative to the dollar – on the LESS sensitive scale of 3% X 3 box reversal


 Below is one example of what might emerge in a global economy that continues to weaken:

The ratio chart of gold to $CRB (commodities) also gave a sell signal (gold weakening relative to commodities)


Based on horizontal count, the target destination following this breakdown is 492.

But, if you look at the less sensitive chart below, if this target is reached it will represent a serious sell signal because it will have broken below a quadruple bottom



Why would gold fall relative to commodities?

Because it has been rated as a currency up to now and has therefore outperformed commodities. If the ratio of 492 is reached then this will be a signal that gold will once again be seen as a commodity and it will be seen as an overpriced commodity.

Why would it be seen as a commodity rather than a currency?

It could happen if the US Dollar index reaches 87 – thereby entering a bull trend.

Why would this happen?

Because Europe is a basket case and the Chinese economy is slowing and China wants a weak reminbi.

It doesn’t follow that the long term portents for gold are bearish – but I think that a lot of short term oriented goldphiles are going to get burned before market forces finally prevail over the actions of the US financial authorities.  The “Establishment” (led by the Central Banks) is fighting for its life.

The bottom line, in my view, is that the world economy cannot be fixed unless the Central Banking system is disbanded. Central Banks are part of the problem and, therefore, cannot possibly represent part of the solution. But it doesn’t follow that gold is “the” appropriate alternative. There are other alternatives. Arguably, we are facing a Post Industrial Revolution era. Arguably, the “old rules” won’t apply in a totally new paradigm of human existence. Gold, by definition, is part of an “old” thought paradigm – one that came into being when the world’s population was only a few million people.

However, for what it’s worth, I think the global economic and financial problems are soluble. The missing element is “integrity”. Those who believe that, by embracing  gold standard integrity, will be “forced” on the world’s financial authorities are, in my view, dreaming.  What the world needs is new thought paradigms that will be appropriate for a planet with a population of up to 9 billion people. A new day is dawning and we have been witnessing the last finesse of an impotent Establishment. Humanity needs to adapt or die. My bet is that we will adapt.

By Brian Bloom

Once in a while a book comes along that ‘nails’ the issues of our times. Brian Bloom has demonstrated an uncanny ability to predict world events, sometimes even before they are on the media radar. First he predicted the world financial crisis and its timing, then the increasing controversies regarding the causes of climate change. Next will be a dawning understanding that humanity must embrace radically new thought paradigms with regard to energy, or face extinction.

Via the medium of its lighthearted and entertaining storyline, Beyond Neanderthal highlights the common links between Christianity, Judaism, Islam, Hinduism and Taoism and draws attention to an alternative energy source known to the Ancients. How was this common knowledge lost? Have ego and testosterone befuddled our thought processes? The Muslim population is now approaching 1.6 billion across the planet. The clash of civilizations between Judeo-Christians and Muslims is heightening. Is there a peaceful way to diffuse this situation or will ego and testosterone get in the way of that too? Beyond Neanderthal makes the case for a possible way forward on both the energy and the clash of civilizations fronts.

Copies of Beyond Neanderthal may be ordered via or from Amazon

Copyright © 2012 Brian Bloom - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Brian Bloom Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in