Wow, I just picked up on something. I was looking for the gold price to fall back to $700-750/oz levels and is did that, but its since recovered to $US864/oz, thats a 11% increase overnight. Seldom do we see such volatility in the gold market, but its actually more significant than that because its actually preserving a certain chart structure that is very bullish for gold.There appears to be a 'flag' structure developing between $800-1000 levels. The significance of this is that when flags are terminated on the upside, they tend to advance by the same amount as the flag pole. In this case the flag pole is between $400-800 levels, so I am expecting in the next gold rally for gold to break out above $1000/oz and to rally up to around the $1400/oz level. I am expecting it to do that very quickly before pausing. The 11% move I think signals its going to keep going unless we see a pull back overnight. The concern of course is that the USD is being debased at a time when the US will not have the confidence to raise interest rates to fight inflation.
Andrew Sheldon www.sheldonthinks.com
why will nickel rally?
ReplyDelete