Monday morning, Dennis Gartman, talking about the recent gold price action, said to CNBC: "Here we are under [$1,400]. Who would have thought it? Not I." If one analyst is correct, Gartman is about to be even more shocked. Technical analyst Stephanie Aymes at Societe Generale believed the recent price action will send gold to $1265 within the next one to three months, according to a report published Monday.
Other metals aren’t likely to fare much better. She sees silver falling to $21.35 along with huge drops in platinum and copper. Interestingly, metals (particularly copper) are seen as predictors to future equity market movement. If that’s the case, the correction everybody is afraid of may soon be upon us. Even if you’re not a commodities trader, the metals breakdown is worth keeping an eye on. Even the most resilient equity bull market won’t absorb this kind of breakdown for very long.
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