http://seekingalpha.com/article/313124-precious-metals-pullbacks-in-perspective
Read the above hyperlink. Gold fell to USD1667 oz today! It is on the 200d SMA. It has already fallen 14% from the high of USD1930 oz. I reckon the worst it can get is 1470 oz, which is another 12% downside at most. The return risk ratio looks increasingly attractive and I would buy more at this point.
USDSGD shot up to 1.301 today. AUDUSD to 1.008. Risk aversion is back and it seemed to suck some air out of gold. The fear is that ECB will not print money like the speculators expect.
When gold last fell by 31%, it was during the deflationary times in 2008, before QE came in. But when QE started in Oct 2008, gold started to reflate. This is the likely scenario for 2012 - more QE from the US, Japan, UK and the EU.
