We Called Yesterday’s Gold Plunge. What’s Next for Gold?
-- Published: Wednesday, 3 September 2014 | Print | Disqus
By JS Kim
Yesterday, we sent a special bulletin to our Platinum Members in the early afternoon, Asia time, that analyzed the current data in the gold markets and came to this conclusion: “Gold ran up to $1292.90 last week before settling back down near $1282 now and silver likewise approached $19.80 before closing back down in the $19.50 range now…we might expect a decline in gold prices to the $1,260 range and then a quick reversal and movement higher in prices this month.” Note that when we wrote this bulletin, the price of gold was still trading at $1282 before descending to within $1.80 of our call yesterday after New York markets opened to a low of $1,261.80. Often when analyzing and predicting gold price movements, one must think like a chess player, several steps ahead of the bullion bank manipulators that perpetually wish to suppress gold (and silver) prices. Therefore, though there were no visible signs on any of the charts that yesterday’s raid in gold and silver was coming, there were plenty of signs beneath the surface that predicted the strong possibility of yesterday’s move.
So what’s next? As I write this follow-up article, gold is holding steady at $1267.30 an ounce and silver is holding steady at $19.23 an ounce, about the same levels as their close in NY yesterday. Does this mean that one should immediately jump in and buy this significant dip as yesterday’s decline fell to within a couple of dollars of my $1,260 target? New daily gold and silver data must constantly be incorporated into updating one’s outlook for precious metals price behavior, and in my opinion, a brief perusal of yesterday’s data leads me to believe that a little bit more caution is merited, that there is a good probability we get a little more follow through on the downside and that gold prices descend to the $1,250 range now. If this occurs, then we evaluate further at this point. In the meantime, when will the recovery resume? This call is never a science, no matter how much staunch chartists want you to believe this, due to the analysis of price manipulation and fraudulent data reporting that must be incorporated into one’s analysis. In any event, when the incorporation of new daily data into my analysis allows me to feel confident about calling a reversal, I believe that we will experience at times, a rapid and violent reversal, especially with the gold/silver mining stocks. Don’t let this several month consolidation in gold and silver assets lull you into believing that gold and silver will never rise again. This consolidation period is just the calm before the storm and a significant rise higher. Despite yesterday’s steep decline in gold and silver prices, it is my firm belief that good times for gold and silver investors is not that far off in the distance now, so finalize your preparations now.
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