Gold is on the rise after months of sluggishness.
After all, it’s been almost a year since the $1900+ record high was reached, yet the gold price hasn’t declined even 20%. Think about it… considering the 170% gold rise (from the 2008 low to the year ago record peak), gold has only given back 19+%.
Gold’s strength reinforces the reality of an unbalanced financial world.
Accumulation time is drawing to a close, but it’s still not too late to buy new positions.
Gold will now look promising by staying above $1630, but it’ll be clearly out of the woods above its 65-week moving average at $1650. How high could gold go?
GOLD TIMING: Bottom in & poised to rise further
Many of you know the ins and outs of favorite intermediate indicator.
This is pretty technical. But if you follow along I think you’ll agree that this indicator helps measure the timing and growth potential for each intermediate gold rise, as well as the declines. It’s worked well over the years, including during the bull market of the 1970s.
Bear markets also have these intermediate moves, but with subtle differences.
Gold is a cyclical market and its moves tell us a lot about the world and other markets. Right now, it’s telling us the 11 year bull market is alive and doing well.
SO WHERE ARE WE NOW?
Here’s a twist and some food for thought… Gold fell from its September record high almost a year ago and it declined nearly 20% to its December low. This fall alone could’ve been a D decline because the indicator fell to the low area and gold tested its moving average. The percentage decline was also in line with former D declines.
Then the 16% rise to the February high was within reason for an A rise, while the 14% decline from the February highs to the recent May lows was also normal for a B decline.
If this proves to be the case, and the B low is complete, then gold is getting ready to take off in another C rise. And if the bull market stays true to form, we’ll see a record high reached before the leg up is over!
Once gold closes and stays above $1650, we could see it jump up to the $1700 level. Above $1700 means $1800 would be the next target.
If gold rises in a C rise, similar to the 2006-2008 C rise, gold could then reach record highs near the $2200 – $2400 level.
