my earlier update on 21 Feb already forecasted the severe drop in gold is coming. the gold price now is even lower than that of 21 feb [about 927], the price rise has all gone and evaporated. as indicated earlier once gold fell, aud will get hit too. aud got a new high but cant really sustain it and it also fell from the high [around 95.5] above 94 to only around 90.
crude has also dropped about 10%, if it does drop even more, the pressure on gold price will be intense.
now also look at shanghai comp index sci, it does point to a possible breakout above 3800 and reach a short term max of at least 4080.
if stocks rose, crude falls, currencies fall [against usd] too, then gold the invesment alternative will fall even faster.
gbp, as indicated earlier in this blog is the weakest, although the short squeeze sent it to 2.10 but fell back to 198, the fall [abt 6%] is even more drastic than that of aud [abt 4%]. euro is the exception as it looks more likely that some governments are behind the purchase which is why it falls much less.
expect this trend of weak gbp, aud and a rather strong euro to continue if and only if the stocks rally does materialize as the sci chart indicates.
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