This Brutally Simple Gold Chart Speaks For Itself

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		Home Tech Finance Markets Politics Strategy Entertainment Advertising Retail Sports Life Tuesday, April 23, 2013 This Brutally Simple Gold Chart Speaks For Itself The analysts at Morgan Stanley had long been bullish on gold, arguing that it was being driven by the "four pillars" of a bull market. But in a note last week, they said those pillars were "crumbling." This morning, the firm published its second quarter "Global Metals Playbook," which included a very plain chart of the price of gold and three lines. The lines have no labels.  One can assume that the upward sloping line signifies a trend that has been broken.  One can also assume that the parallel lines represent resistance lines, which no longer hold. Given that it seems to be a "technical" chart, some additional labeling could've been helpful. But it was probably unnecessary. The magnitude of the recent sell-off seem to speak for itself. "Worryingly for the outlook for the gold price, it is increasingly evident that investor conviction about the desirably of this form of investment, along with other safe-haven assets, is declining," they write.  "As of 12 April 2013, the aggregate holdings of gold-backed ETFs has declined by 249t or 8,005,599/oz since 1 January 2013. Here's a bit from their April 17 note: ...we are reluctant to try and identify a hard floor in the retracement that we have seen in the spot market. Overshooting is also a well-established feature of these types of sentiment-driven markets, and some very material technical damage to the long-established uptrend in the gold price has been done. We note in this context the psychological impact of the breach of technical support at US$1,525/t, long thought to be demarcation line between a rising or falling long-term price trends. Regardless, the chart is simultaneously elegant and brutal in its simplicity. Read » Also On Money Game Today: ANALYST: The Hacked AP Tweet Market Plunge Just Caused Traders To Reveal Their Hands Stocks Briefly Collapse On False Tweet From AP Advertisement CHART OF THE DAY: Earnings Season Is Off To An Ugly Start CHART OF THE DAY: Apple Is The Entire Reason Why Tech Earnings Are Falling CHART OF THE DAY: The S&P Falls Beneath A Horizontal Line And A Diagonal Line Share this: Facebook Twitter Digg Reddit StumbleUpon LinkedIn The email address for your subscription is: ipat39@gmail.com Change Your Email Address | Unsubscribe | Subscribe | Subscribe to the Money Game RSS Feed Business Insider. 257 Park Avenue South, New York, NY 10010 Terms of Service | Privacy Policy

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