Gold is not doing very well. Down $41 or (-3.17%) over the last 30 days. More importantly, it broke an important short-term support level and is likely heading to it’s next strong support level located around $1,200.
What’s going on?
Nothing, Gold is simply tracing out it’s exact structural pattern. As I have mentioned before, Gold will do very well over the next few years, but in order to make money your entry points must be timed perfectly. Simply put, the time to buy Gold is not here……just yet.
Here is what I believe to be the best way to look at Gold and it’s price. Forget about the fundamental factors such as supply/demand and geopolitical events. From our vantage point, Gold’s technical/structural setup is identical to the one in 2007 when Gold went from $600 to $1,800 an ounce.
With our mathematical and timing work predicting a severe bear market between 2014-2017, the FED will have no choice but to introduce further stimulus in order to try and re-inflate our markets and the economy. When that happens, I would expect Gold to be surging higher, not setting new lows. In fact, I continue to believe that Gold will be one of the better investments out there over the next 3-5 years.
All you have to do now is wait for Gold to break out above $1,420 and we should be off to the races. Be patient now. Our timing work shows that the next stage of the bull market in Gold is just around the corner as it will be surging higher by around this time next year. If you would like more precise timing please Click Here.
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