Gold has continued to consolidate in a large sideways holding pattern focused around US$1300, disappointing bulls and bears alike.
The failure of gold to rally to the US$1527 area prompted us to reconsider our second alternative in mid September. That view called for a continued frustrating consolidation. Now we are in the final stages with a final slow, meandering upward move to US$1300 – US$1330. Then a strong downward move will take us to US$770 and potentially lower. This move will be typically powered by a sudden news flash that “spooks” the market. The extent of the down move will prove to be devastating and set up the key buying opportunity for the next long term bull market. In a worse case scenario gold could fall towards the US$400 level. We shall watch the unfolding downward move to discover the depth of the fall.
Interestingly gold’s consolidation phase looks set to be complete in the next month taking us into the end of the year. We also anticipate the US stock market to have completed it’s upward move, accomplishing a long term top that will stand for decades to come.
We will be publishing close to this all time peak our “Next Major Phase: the coming Mini Dark Age 2018-2030” which will spell out what is happening, the whys and things to expect.