It seems like everywhere I look I see predictions for gold to head back down to $600-$700. Now I'll be the first one to admit that anything is possible but I must say all this negativity just tickles me pink. This is exactly what we need to see for gold to continue higher.
The first chart is the 50 and 200 EMA for gold. What do you think, is this chart going up or down?
Take note that just like the first phase of the gold bull the 50 is again back above the 200.
Next we have a chart of Platinum. It led the precious metals bull during the first phase and it has now rallied back above the Feb. highs. If Platinum is leading again, then I would expect the rest of the metals complex to follow shortly.
Gold is still in the process of putting in the B wave correction. I'm expecting that to bottom with the soon to be due weekly cycle low.
The junior sector is now coming alive with many juniors exhibiting breakout rally days on huge volume similar to many of the energy stocks in 02 & 03.
Gold has broken out above the 1980 highs of $850. That is a 28 year consolidation by the way. WD Gann pointed out that often the size of the consolidation will determine the magnitude of the rally once an asset or commodity breaks out of that consolidation.
Look at what happened to oil once it finally broke thru the $40 ceiling.
So like I said, anything can happen, but at the moment I don't see anything to suggest that the current pullback isn't just a normal B wave correction in an ongoing monster bull market.
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