Signs the Gold Price is About to Make a Transition

Technical signs the GOLD PRICE is now entering a powerful bull move includes a break above a recent downtrend line accompanied by a higher low from the $850 low made during the first week of May. This breakout can be accompanied by a correction to around the nose (910) but then a powerful advance should be accompanied shortly after. I am looking for a powerful crossover in the MACD indicator.

This bull move could easily be one of the most powerful bull moves since Gold started its Bull Market phase back in the year 2000.

The GOLD PRICE, still way below its inflation adjusted value of $2,200.00 (minimum) may surprise many on how fast this gap may be closed as the realization that GOLD is becoming more of a currency and shedding some its identity as a commodity.

For a review of the GOLD STAGES: (Author Jim Sinclair) www.jsmineset.com

Note: Any failure for the dollar to find support @ 71.10 could ignite the gold price dramatically here:

Gold Price Accelerating vs Time?

The trend for the gold price is obviously heating up. Last August when Central banks slashed rates and were willing to accept non performing OTC derivatives on their balance sheets to avoid a collapse of the financial system you knew the gold price was going to go parabolic.

As The Fed continues to monetize debt and flood the world with money, (M3 now hidden) I expect the gold price to continue its accelerating uptrend until it finds its inflation adjusted levels. For now I'm accumulating and sitting tight for a few years still before I sell any gold.

Gold Price Today is Truly a Golden Opportunity to Accumulate

As I mentioned to Jim Sinclair today on www.jsmineset.com this has to be a golden opportunity to add to your bullion holdings.

I see a reverse head and shoulders in the making. This would make for a small bear trap of the trend line in orange which should make the fans of intervention very happy in the short term anyway!


Jim,

This has to be as good as it gets for those who didn’t have the courage to buy at $850, the point you told us many times was the end of the fishing line.

At $1,200 Gold we will look back at the Gold chart and realize this was a golden opportunity!

CIGA Alex

Note on the US DOLLAR INDEX,

I don't rule out short term intervention to bend the charts but I do rule out success on any long term basis.

Gold Price is Building its Platform for $1200 Target

The GOLD PRICE is doing very necessary work that must be done in every bull market. That is to build a platform for the next higher high, without this you have straight line moves which everyone warns must not happen for a healthy bull market.

It's painful if you are a holder of gold and gold shares but it is totally necessary. The term parabolic comes to mind which scares the heck out of technicians if these corrections are not part of the bull market.

This work being done, creating a low after the correction a consolidation chopping pattern up and down is the foundation for a launch pad if you will to catapult the gold price to its next target or nominal higher high.

This action is perfect for our trip now to $ 1,250 and beyond.

French Curve Update:

The Flip Side to the Gold Price - The US Dollar Index

Here is a chart of the US dollar against a basket of foreign currencies. The currency or the stock of the USA, measured against the stock of other countries. Is it a coincidence the Federal Government stopped publishing the amount of shares they were adding into circulation also known as M3.

It is no wonder that oil, commodities and precious metals which are finite items in supply show strength in terms of US dollars, when there are no limits to the quantity of US dollars issued into circulation. You can see with just unchanged demand the value of hard assets measured in US dollars must rise.

Gold however, is in the transition from a commodity/currency to strictly a currency. During the next leg down in the fiat US dollar, GOLD, I believe will start to regain its credibility as REAL MONEY among all generations once again.

Gold Price Uptrend Line is Sound

Consider a 20 % pull back in oil from todays $125 Oil Price level. That leaves you with a $93 Oil Price. Now consider the historical GOLD/OIL ratio is 15 - 20, you can see Gold is very reasonably priced here. 16 times 93 gives you a $1,488 Gold Price.

My view is there is a possibility the world is coming to the realization that a $100 Oil Price and climbing is the new reality.

The Gold Price May Not Be Rising in a Straight Line

The 70's are back! Is that what is being quoted in the Financial Press this week?

Well maybe the chart patterns for the gold price of the 70's are back too. I think they are.

Notice this is a logarithmic scale for the gold price and the silver price, and the trend line is not linear, that means a straight edge will not give you accurate support line for the price of gold or silver. This is important for investors and traders to consider because they need to know where to put new capital back to work on pull backs.


Jim Sinclair (bio) was the largest gold trader in the world in the 70's so I asked him what tool do we use when the straight edge no longer works. He suggested that I try a French Curve. Was I ever surprised, what a fit.


The French Curve shows a momentum change. If you need another example of how the momentum changed for gold in the past, just look at the 70's chart for the gold price. Good luck with your new technical tools you may need it with the gold and the gold shares in the future.

I am considering shortening my time frame for dollar cost averaging into Gold and Silver.