Gold Weekly

The gold price weekly chart may very well be showing a 3-4 move in elliiot wave terms. Having completed this move, the next wave is 5. But it might be too early to assign any definitive count, since so many antecedents can be pointed out on the monthly chart to compare, such as the spring 2004, fall 2004, or spring 2008 in rsi terms.

So we wait and see. There are very definitive supports, such as a probable increase in inflationary pressure due to central bank QE programmes, low or negative nominal interest rates falling below the bullion lease rates, continued negative real interest rates, gold as a money market commodity, all of which take time to gain traction and don't happen overnight.

But , if this WAS a 3-4 in elliot wave terms, and we were now working on the 5-wave of a 3-wave, then this gives us a proportional target of over $2700/oz. The previous peaks were about two years apart, so I assume it will take that long to be quite certain.

1033.90 / 728 = ~1.42 1.42 X 1923.70 = ~2732

supersize: http://www.flickr.com/photos/11747277@N07/6644448655/sizes/l/in/photostream/

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Got Gold Report

Why We Remain Bullish on Small Mining Shares

http://www.gotgoldreport.com/2011/12/why-we-remain-bullish-on-small-mining-shares.html

-F6