One final point is that oil and gold, should they pull back to their 200d MA’s, or a bit lower, would still be considered to remain in long-term Bull markets. Within a couple years I believe new cycle highs will be reached, particularly for gold, which has become, with the strength of the emerging BRIC economies, and the decline in relative importance of the $USD, the new reserve currency of the world.

 

Given the reluctance of finance ministers and central bankers of the economically powerful G-20 nations to revert to a gold standard that hinders their domestic political and monetary policy freedoms, I think that traders now are generally in agreement that gold is the standard.

If gold is, in fact, the standard, after a pull-back, caused perhaps by increased margin requirements on commodity exchanges, I believe the gold price (along with silver and platinum) will rise to very high levels well above $2000 per troy ounce within five years.