In doing a little browsing I stumbled upon Carl Swenlin, a noted technical analyst whose articles are sometimes linked at Biiwii.com. Mr. Swenlin sees the potential for gold going to $300 per oz. in Chasing Gold. He cites many analysts recommending gold in the October liquidity crisis. That never happened here in 'if gold declines in a deflation impulse it will do so less than positively correlated commodities' land. There was no denying that the people buying at $900 an oz. in knee jerk fashion as an emotional fear response were destined to get croaked.Mr. Swenlin writes near the end of the article that after not predicting deflation "I was not thinking clearly (at all?)" and I will take that as yet another sign of how pervasive the deflation mindset has become. This does not mean we will have a quick exit from the deflating fear, but it certainly is a prerequisite to the next round of more severe inflation. Meanwhile, gold has still not hit my target zone of 600-650, and my own chart is not bullish either. Especially since we just had our first monthly close below the EMA 18.
