Image Source: Pixabay

Gold has done exceptionally well over the past month, but it may have topped out on Thursday, as its recent island reversal pattern appears to suggest.

Even if it hasn’t topped out, the gold miners seem awfully close to major resistance in the form of a price gap (dashed red line) and major trendline resistance (blue descending line).

My main argument that gold is not headed for glory days is based on one simple chart: the long-term gold futures divided by the money supply. Back in the late 1990's and early 2000's, it shaped up fantastically and flew higher. This time, it got about 60% done with the bullish setup and then just fell to pieces.

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