End of down-trend for gold?Gold FuturesCOMEX_DL:GC1!flyinkiwi10Thanks for viewing, - Sentiment at 0% for gold (which is normally a good buying opportunity), - In Elliott Wave Theory, wave 1 and wave 5 are often of similar lengths, with wave 3 often being extended. - If that is the case here, I drew a box to measure wave 1 and transferred it to see a potential end point for wave 5 (if they do end up being similar lengths. - I also note that on the daily RSI that lower price lows are evident, while the RSI is making higher lows. This is bullish divergence, normally indicating the slowing of the trend or even possible reversal in the trend. - If there is another lower low matched with another higher low on the RSI I would become 75%+ sure that we are switching bearish for bullish. Let's see. Medium and long term I am bullish on gold, simply because most major governments will try to allow inflation to run a couple of percent higher in real terms (vs the manipulated CPI figures) than the govt bond yields. That is by far the most likely way that the debt crisis will be addressed (deflating away the real value of the nominal debt - with the added advantage that some don't believe governments would do that and the vast majority either wouldn't understand it and / or care). But the more astute private and institutional investors will not want their real returns to go negative and will seek real return in other sectors. I believe that will be in physical allocated gold and silver. That is why. Despite short-term moves, I believe the continued central bank purchasing of gold as inevitable at this stage. If you see gold as a pet rock without a return and are generally dismissive, eventually, when you compare it with negative yielding (in real terms) government bonds it will look very very good at some point in the near future. Even if the 10y US Treasury at 10% would in my view yield a 2-3% real yield and we all know that rates aren't going that high.