The monthly chart says “well of course it is time for a pullback” because we’ve plotted point C for a year now and it is clear long-term resistance. Yet still, I was not sure about what kind of resistance it would present (mini or maxi). Gold’s hard smash (it’s already down to the EMA 20, ref. the earlier update) and the gold/silver ratio rising and possibly bottoming indicate we could be in for a struggle here.

Initial support is at 315 (it’s already dropped to 323) and the best support is at 300-305, which coincides with the rising SMA 50. The precious metals have been overbought and over-played by unhealthy players (i.e. momo chasers). The time has come for that to shake out.

That said, we should watch for the miners to begin to out perform gold as a signal to the correction’s end. This could be a flash event, or more of a grind. But the HUI/Gold ratio should be instructive on that.