Here is an interesting analysis about gold from a knowledgable poster who goes by the name of samxxli on the Smart Investment Website.

http://www.mexicomike.ca/php/phpBB2/index.php

After I concluded that USDX had a large wave (4) correction and is currently on early wave (5) down with much lower expected target price, I see a very bullish scenario for gold price. The markets seem to align for a much higher gold price from current level. Then slowly a known pattern of corrective wave II came to mind for gold price. I originally plan to see more prices actions for confirmation before I publish it. Since you raised the questions, I decide to publish it now.



Major wave I up topped March 9 2008 at 1033 for gold price. Major wave II down is currently underway. Wave A of II bottomed late October 2008 at 682. Wave B up takes on the pattern of (a) (b) (c) Zigzag. Wave (b) of B was a large triangle. Wave (c) up of B is in progress now. The whole pattern for major wave II is Double Three Running combination. Wave B is expected to advance to much higher level above wave A top. Wave C down for a running combination will always be a contracting triangle.

http://www.kitco.com/ind/rosen/aug062009.html
I include a link for Rosen’s recent article on gold. Rosen has developed proprietary timings on markets call. Rosen’s proprietary timing on gold fits perfectly to my call of major wave II. His proprietary long term delta # 4 high for gold is due Feb 17, 2010 (see gold monthly chart #2 of the article) that I expect wave B up will end. We will have another 4 months left on the up move and wave (c) of B will have run for 7 months. Rosen’s proprietary long term Delta # 5 bottom is due Oct 20, 2010 and that I expect wave C down of major wave II will end. The timings make sense as the times for A+C is approximately equal to B. Explosively major wave III up will start in the fall 2010. First leg up of III will last for one year until 10/17/2011 where Rosen’s proprietary long term Delta # 1 high is due.

Rosen emphasizes on the call of C wave low of 644 in the fall 2010, he completely ignore the fact that the direction of gold price is up until Feb 17, 2010 according to his LGD#4 call. He doesn’t believe in the upside strength of gold. This is actually a representative mood of general markets including the mood of our forum (S.I.). Investors at large expect markets plunge, they are skeptic and disbelieve on sustainable markets strength. Poll shows analysts expect gold prices to be under 950 for the next few years. The least resistance for gold price is up and the markets sentiments support much higher gold prices.

The target price for reversed head and shoulder pattern is 1300 and that for wave B Zigzag assuming (a) equal to (c) is 1270. Gold price has been in base building for 19 months and recently has consolidated in a triangle for 7 months. I believe gold price has stored enough energy to push it to even higher prices. Markets sentiments will also support as skeptics will slowly convert and buy to push up prices. I set a higher target at 1470 by assuming (c) wave is equal to 1.62 of (a). The triangular C wave down that follows should stay wave above the breakout level of 1030 if wave B top at 14