So
provided we see a move through the $1,800 per ounce region on good
volume this is likely to provide a strong platform and base for an
extended bullish trend.
Summing
up, the precious metals market is likely to decline in the short term
(and only in the short term! Gold is likely to soar in the following
months.) along with a big decline in the stock prices and a decisive
upswing in the USD Index.
On
analysis of the movements of Gold
Futures,
in different time frames, I find that the Gold bulls look ready to
enter into new territory ($1805- $1954)
Gold
speculators boosted their bullish bets higher for a second straight
week and this week’s total (+27,609 contracts) marked the
highest one-week gain of the past eighteen weeks.
The
next rally in Gold will likely target the $1850 level. Beyond that,
the subsequent rally will likely target the $1950 to $2100 level –
well beyond the previous all-time high level.
