A few weeks ago the “Power of the Pattern” was suggesting the next key upside price target for Gold was $1,900, per the chart below. (see post here)
At the time of the post, Gold was priced at $1,641. Did $1,900 seem unrealistic less than 3 weesk ago??? Gold has added over $200 per oz since the chart below.
CLICK ON CHART TO ENLARGE
Well as many in the States wake up this morning…We “are pretty much there”… as Gold hit $1,878 in early market hours.
CLICK ON CHART TO ENLARGE
As can been seen in the above chart, during the last 9 years, each time Gold has hit channel resistance, it has backed off for a while, until it found support at the bottom of its rising channel. The largest percentage decline during the last 9 years took place at (2), during the 2008 financial crisis, when the “Great Escape” took place. (see Great Escape here)
I shared back in May that one of the largest risks to investors was the “Great Escape” taking place again! What did the “Great Escape” look like in the past?
Investors just wanted out of everything….. U.S stocks, Global stocks, Grains, Live stock, Silver and even Gold. I’m sure glad nothing like that will ever happen again! 😉
I have received numerous emails asking a great question…. where does the next key resistance for Gold come into play if the 261% Fibonacci level/ channel resistance doesn’t hold? If Gold breaks above channel and Fibonacci resistance the next Fibonacci Expansion/Extension level comes in around $1,000 higher. Could Gold reach this target? Sure!!!
Suspect two things…..A break of the $1,900 level would see Gold add another 20% to its price in no time and the world might have a couple of new challenges on its hands!
hi guys, the charts make sense if we were living in the past. old data does not take into account ; tarp,qe-1,qe-2 the total collapse of the european financials. china’s refusal to fund our make believe life, ie; buying long term bonds … need i go on? these are totally uncharted waters. the investing class know this on a viceral level.the paradigm has shifted. how far can we go printing deflated dollars to buy 70% of our own bonds.your charts are great, but they fail to point out that the whole ball of wax is based on a lie. as long as the fed prints trillions of un-backed dollars the only (safe) place to park capital is in gold/silver. they and the other PMs are the only investment that will rise as the value of the dollar is diluted away. yes there will be ups and downs but when more people realize what our govt has done to the value of the dollar, there won’t be enough PMs to park the available capital. P.S. please have the good sense to call it as it is. we are in a depression and the sooner it gets out the more people will be able save themselves and their families.
In September of 1975 I bought 5 Kruggerands for $141.00 each. I still have them, plus many more that I bought through the years. Later, a batch was from Investment Rarities – 30 Kruggerands at $239.00 each. As I’ve always said, “I’d rather be lucky than smart.” I sure am lucky.
Chris,
Love your analysis …your blog is my favorite ..golds performance since July has been nothing short of amazing .With all the problems in Europe, U.S etc i feel there is no limit to golds advance.I know technical analysis is very important , but sometime you have to over look it and say that “price rules “-and to follow the trend which at this point is up .Sure gold will pullback but these pullbacks have become shorter with buyer coming in and pushing the price higher.
Do ypu think gold will take out $1900 soon and march higher ..i guess we will find out soon enough
Sorry to hit you up three times, but also potentially supporting the “gold going higher” is the silver chart…looks ready to blast off!?!
http://stockcharts.com/h-sc/ui
(and chart is w/out todays big move up)
I guess what I’m wondering is T’s seem to be implying a big mispricing (selloff) is coming but dollar non-confirm is saying people are looking for real stores of wealth and it may be PM’s (not oil, not ag, not RE) this time around?
Or do you believe the likely selloff will lead to forced selling of all assets (PM’s included) to meet margins calls on the way down?
So there may yet be hope for a the lone short? lol