Gold Monthly Chart

We recently had a two-year cycle high in gold. Cycle highs correspond with price highs and reversals, although not necessarily the top of the market.

The next two-year price cycle high, if the gold market is to continue should occur in two years. Also included in the chart are some inflation-adjusted numbers, though some of these numbers are now proven to be conservative.

In terms of elliot wave, we may still be looking at a one-wave extension, rather than a three-wave extension. The monthly close on the logarithmic scale chart is very important here, even though this is the linear scale chart we are seeing now.

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-F6