These have all been shown before, but for people worried about the downside for gold, the targets are roughly 900, 850 and 650. As I have written, I don't think gold will go much below 850 because I do not believe the dollar has sustainability to the upside now that Scenario #1 has been eliminated.

Regardless of how well the ship of fools is able to spin a global growth story - and I added a uranium company yesterday in another tiny step toward being bullish the commodities - we are in a mega counter-cycle. Gold, which has been flocked to by the frightened hordes, may decline with the US dollar if/when hope finally gets a bid. See this excellent look at gold sentiment by Steve Saville. With Cramer aboard and Bullish sentiment at an extreme, well, you know the drill.

So yes, gold may not hold the first level of 900, but it is in a legitimate bull market - maybe the only one out there. The usual blow horns will sound about manipulation this and that, but in reality gold currently has way too many unhealthy holders. Gold is not about price and the value it embodies is not affected by short term emotional markets.

Here are the daily and weekly charts, illustrating the downside targets. We are working 900 now. The lower targets are no sure things, but at least readers will not be surprised if they come about. The weekly shows the potential ABC correction that is buzzing all around the internet, including the chart billing itself 'the most frightening gold chart in the world' with its target under 400.

I have also added a weekly gold to euro ratio (GER) chart. I have little doubt things are going to get worse before they better in the global economy and in global markets. What we are dealing with now are sentiment and technical extremes. GER is technically extended and argues that people buying gold now with euros should get ready for a potentially big downside reaction while USD gold buyers should be called into action sooner.