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Dear ,
Gold continues its current decline - now in its fourth day. The Federal Reserve made no mention of additional stimulus, better known as "quantitative easing," during its last meeting held on Tuesday. It is the current contention of the Fed that the U.S. is sustaining its expansion. This fact was cited as the main reason that no new action has been taken to bolster the economy.
Dropping almost 8% in the last three days, gold will possibly show a loss for the quarter, something not witnessed since September of 2008.
Christine Lagarde, the managing director of the international monetary fund warned today that the "E.U. debt crisis is growing to the point that it won't be solved by one group of countries..." Lagarde also stated "that if countries don't work together, the world will face a situation similar to the 1930s, before the world slid into World War II."
As we quickly approach the conclusion of 2011 I have begun to compose my forecast for next year. Today's report will begin to look at the raw data that could be a significant indication of what lies ahead. Based upon a comparison of year end gold moves in 2010 and 2009, major similarities and differences become apparent.
I do not believe gold's bull market is over, but rather is experiencing a significant correction. Prior corrections were found within a bullish impulse phase, whereas recent movement is indicative of a corrective phase. Today's report will highlight technical data that supports this assumption.
As always, wishing you good trading.
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