Gold might be something to watch in the short term as there is an opportunity for gold to turn around here. It may not turn, but it does have a couple of things going for it now. One is the recent last type candle that came on Tuesday and the other is the positive divergence in the . That's not much but it might be enough. However, this is pure conjecture until GLD can get above and stay above short term MA's. I'm just watching it and because of the way I trade I cannot consider gold or, in this case GLD , until the 9EMA crosses up through the 20MA. No one wants gold now and the financial media has totally written it off. Hmm.
I agree with you that the price will continue to drop. But if it goes down far enough it would seem to me a good buying opportunity for the long run. It is bound to rise again in the future. there's a good analysis this morning on http://www.dailyforex.com/forex-technical-analysis/2014/01/Gold-Price-Analysis-Jan-2-2014/27390. Seems to meld with yours.
Fortune100, thanks for your comment and I went to the link and read that post, as well. It's so easy to be bearish gold these days, maybe, just maybe, too easy. As of 7:20AM ET, gold and silver up huge. Maybe a head fake. However, if this lasts, then GLD would confirm Tuesday's last engulfing type candle with a close above Tuesday's high. Let's see how it goes. GL