Despite what so-called gold bugs have been trying to predict for years, it still remains seen how valuable the most "hated" asset on Wall Street can be. Calls of $10- or $50,000 gold have made headlines and often laughs, but when investors take into account the supporting fundamentals, gold can be extremely beneficial during these centrally-planned economies.
Recently, Pierre Lassonde said that gold could have the potential to reach $8,000 per ounce when looking at the gold-to-Dow ratio. He mentions how tangible assets tend to regain parity after previous bull-markets, and the potential for his forecast is supported if the gold-to-Dow ratio his .5 while expressing that the quick and expansive adaptation of NIRP will fuel the fire.
As central banks continue to ease ($12.3 trillion in quantitative easing and 650 rate cuts since the financial crisis), there is a potential for a prolonged bull market in gold. As I noted in "Demand for Gold Rockets Higher," if the renewed momentum were to match nominal gains investors seen between 2009-2011, spot prices would near $2,230 - which is not $8,000 but very respectable.
The 1.61 Fib. extension from the current multi-year low and the 2011 high is $2,460.
In "Gold Looks Promising Long Term," I posted last February that the longer-term outlook for the yellow metal remains in tact. Price action continued to trend in the descending channel until it bottomed in December.
What strengthens the cased for renewed optimism is that price action convincingly broke out of the descending channel and back above the 2003 trend line.
In "Gold to Retest $1,130 as Dollar Strengthens," I pointed out last March that the dollar strengthening is trouble and the velocity of such would be meaningful. As we've seen throughout last year, U.S. multinationals have been crushed due to the strength in the DXY,
I also pointed out the descending wedge on the daily chart, which is a bullish reversal pattern. After finding support where I thought the last line of defense was before $1,000 oz., gold rallied hard and broke out.
However, even through wedges are strong indicators of price reversals, the real test is that price tends to quickly retest the broken resistance. If that hold, it could be off to the races.
Please feel free to comment and share charts! And follow me @Lemieux_26
Check my posts out at:
bullion.directory/ab...christopher-lemieux/
www.investing.com/members/200193197
www.teachingcurrencytrading.com
oilpro.com/chrislemieux
Recently, Pierre Lassonde said that gold could have the potential to reach $8,000 per ounce when looking at the gold-to-Dow ratio. He mentions how tangible assets tend to regain parity after previous bull-markets, and the potential for his forecast is supported if the gold-to-Dow ratio his .5 while expressing that the quick and expansive adaptation of NIRP will fuel the fire.
As central banks continue to ease ($12.3 trillion in quantitative easing and 650 rate cuts since the financial crisis), there is a potential for a prolonged bull market in gold. As I noted in "Demand for Gold Rockets Higher," if the renewed momentum were to match nominal gains investors seen between 2009-2011, spot prices would near $2,230 - which is not $8,000 but very respectable.
The 1.61 Fib. extension from the current multi-year low and the 2011 high is $2,460.
In "Gold Looks Promising Long Term," I posted last February that the longer-term outlook for the yellow metal remains in tact. Price action continued to trend in the descending channel until it bottomed in December.
What strengthens the cased for renewed optimism is that price action convincingly broke out of the descending channel and back above the 2003 trend line.
In "Gold to Retest $1,130 as Dollar Strengthens," I pointed out last March that the dollar strengthening is trouble and the velocity of such would be meaningful. As we've seen throughout last year, U.S. multinationals have been crushed due to the strength in the DXY,
I also pointed out the descending wedge on the daily chart, which is a bullish reversal pattern. After finding support where I thought the last line of defense was before $1,000 oz., gold rallied hard and broke out.
However, even through wedges are strong indicators of price reversals, the real test is that price tends to quickly retest the broken resistance. If that hold, it could be off to the races.
Please feel free to comment and share charts! And follow me @Lemieux_26
Check my posts out at:
bullion.directory/ab...christopher-lemieux/
www.investing.com/members/200193197
www.teachingcurrencytrading.com
oilpro.com/chrislemieux
