A look at the chart above you will see the liquidation and be able to compare it to the action seen during the panic and global market collapse of 2008:

around the world need to realize is that this liquidation has been welcomed by the Chinese and other nations which are continuing to accumulate large amounts of physical gold.  This demand for physical gold is the reason why the gold market has stayed within its long trading range and has not broken down.

“It’s important to note that if gold had a $270 move from current levels, that would be enough to get gold through that critical $1,790 to $1,800 level.  That break of $1,800, which we believe will come, would set gold up to move above the $2,050 area.”

“We have a very strong base in silver.  The lows have continued to hold as silver moves towards the end its long consolidation.  We have now completed a 76.4% retracement of that first move up.  So, again, silver is looking like it has formed a strong base here (see chart below).

 

Fed’s Yellen: Full steam ahead on QE3 March 04, 2013|Greg Robb, MarketWatch

WASHINGTON (MarketWatch) — A key member of the Federal Reserve on Monday gave her clear support for continuing the central bank’s policy of buying bonds at current levels.

“At present, I view the balance of risks as still calling for a highly accommodative monetary policy to support a stronger recovery and more rapid growth in employment,” Federal Reserve Vice Chair Janet Yellen said Monday in a speech to the National Association for Business Economics.

While there are some potential costs to the purchases, “at this stage, I do not see any that would cause me to advocate a curtailment of our purchase program,” she said.

Yellen is seen as a possible replacement for Fed Chairman Ben Bernanke if he steps aside when his second term ends in January 2014.

Bernanke also endorsed the Fed’s current policy, in a speech on Friday night.

“A premature removal of accommodation could, by slowing the economy, perversely serve to extend the period of low long-term rates,” Bernanke said in a speech to a Fed research conference in San Francisco.

Yellen’s comments add weight to the idea the Fed will maintain an $85 billion-a-month bond purchase program at its next meeting on March 19-20.

More…

“QE is going to infinity. All that anti-gold, pro-dollar interest can do is add outrageous volatility to the gold market. They cannot deny gold’s price at $3500 and higher”. Jim Sinclair.