The Future of the Gold MarketThe precious metals market is on a rampage, and if the trend continues without government intervention, this is how I believe things will play out.
Please keep in mind, I do not have a crystal ball. Things can and will change.
For example, if the federal reserve starts tightening through interest rates because their motive becomes focused on maintaining dollar strength, they have the ability to reverse this trend for a period of time.
The end result will always be higher gold prices, but the timing may be changed by intervention from government agencies.
Now that we have that out of the way... Here's what I expect from gold, which will also effect how the other metals move.
A large cup and handle pattern has been established on the monthly chart for gold. This basically means a high was set at $1920 and a big wash-out bottom took place shaking all the weak hands out of the market. Now it is ready to make a move similar to the start of 2000 and 1977.
There is a good chance of a pullback this or next year. I believe support will be held in the $1800-1900 area. If we are lucky, price will get smashed down to $1600, but don't hold your breath.
Why do I root for lower prices? Because lower prices give people who haven't gotten they metal yet a chance to participate.
With all the money printing taking place at the fed and reckless spending of the federal government, mass inflation was bound to happen.
Other metals like SI1! and PL1! to follow suite. Gold will typically make the move before they do, so it is key to watch the gold market.
More updates to come.
- Micah
