Gold today broke the critical US$1180 level confirming our view that it will continue to move down to our forecast level of US$1109 before the next major upmove begins.
On examining our forecast we have reason to widen our long term forecast. The anticipated low may happen between US$1080 to US$1109. At US$1080, gold will have experienced a 50% retracement of the entire bull market from 1999. At this level it represents a short to medium term buying opportunity lasting 1-2 years.
If we are able to confirm a low point around this level we will update accordingly. Our long term forecast suggests a rally off this low followed by a swift and subsequent decline to our long term forecast of US$770 before the next major advance gets underway.