Former Fed Chair Alan Greenspan was talking earlier this week, touting gold in the process.

What was I thinking?

What was I thinking?

According to the WSJ, he said “gold is a good place to put money these days given its value as a currency outside of the policies conducted by governments.”

Gold is trading at the lowest since 2010.

Gold is trading at the lowest since 2010.

It might work well next week, but this week, that idea is not so great.

Gold is plunged in trading today and is trading at the lowest level since the July 25th 2010 week at the 1156.85 level. The 61.8% of the move up from the 2008 low comes in at 1154.60. So the pair is approaching some good support but the marked to market on the gold call is not looking so hot (at least at this moment).

Looking at the 5 minute chart, the trend move lower today has slowed down a bit and moved sideways above a topside trend line. Their is a double bottom at 1161.20-60 area. The price remains below the 38.2-50% of the move down from the last corrective high and the 100 bar MA (blue line in the chart below). IF the buyers are to start winning some battles against the shorts, they will need to show they can get and stay above these resistance areas. Until then, the shorts remain in control.

Gold trends lower and consolidating at the low. A move above the 100 bar MA will be eyed to see if the buyers can have a small victory.

Gold trends lower and consolidating at the low. A move above the 100 bar MA will be eyed to see if the buyers can have a small victory.