Gold price update

Back in this blog post from August 6th 2011 I speculated that gold was nearing a short term peak and was likely to experience a significant pull back.  Top left is the chart prediction I provided (shown in blue).  Bottom left is the actual chart we got.



I was 1 month early in my peak call.  Not a bad reading of the EW tea leaves if I do say so myself.  Since we hit the bottom of the channel, gold has been rallying again as expected.  But it seems to be a non-spirited rally.  I think that the GLD ETF needs to take out the old high pretty soon lest the herd consider it a failed 5th with a significant a-b-c pullback in store.  This will only happen if the stock markets get creamed IMO and if housing takes another big step downward as well.  In other words, goal will likely retain its buying power relative to other asset classes.

Prepare for lots more turbulence.  The next decade will ring in sweeping changes in the global economy and likely in the global political landscape.