LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

We Are Still Setting Up For A Strong Rally In Bonds - Are You Ready?
By: Avi Gilburt

Precious Metals Update Video: Market can turn bearish if not careful..
By: Ira Epstein

Gold: Central Bank Sentiment Is Rock Solid
By: Stewart Thomson, Graceland Updates

A Perfect Storm to Titillate Permabears?
By: Rick Ackerman, Rick's Picks

Zinc One Files National Instrument 43-101 Technical Report for Resource Estimate at Bongará Zinc Mine Project, Peru
By: Zinc One Resources Inc.

Zinc One: Looking For Financing Partners - Fast Into Production After Financing
By: Jochen Staiger, Commodity One

Gold Stocks Outperform Gold but not Stocks
By: Jordan Roy-Byrne CMT, MFTA

Market Bides Time Ahead of More Fed Twaddle
By: Rick Ackerman, Rick's Picks

Precious Metals Update Video: Gold waiting for FOMC tomorrow
By: Ira Epstein

Asian Metals Market Update: March-19-2019
By: Chintan Karnani, Insignia Consultants

 
Search

GoldSeek Web

 
Is Jeff Gundlach Correct on Gold’s $1000 Upside?


 -- Published: Monday, 30 April 2018 | Print  | Disqus 

By Jordan Roy-Byrne CMT, MFTA

 

It was music to gold bug ears.

 

We’ve all heard the seemingly shocking or outrageous price targets for Gold. So it’s not new.

 

But this time from a non gold pusher. Someone with credibility in the larger financial world and a track record to boot.

 

Gundlach’s comment was included in every piece of Gold literature that recently crossed my desk. No doubt, if Gold starts breaking to the upside, Gundlach’s quote will be used by aggressive marketers and publishers. But I digress.

 

According to ZeroHedge, Gundlach said that based on classic chart reading, there is an “explosive, potential energy” of a huge “head and shoulders bottom” base, signaling a move of $1000/oz.

 

But there’s one problem.

 

I like Jeff Gundlach. He’s way smarter and way more successful than me.

 

But there’s no technical basis for $1000/oz upside in Gold.

 

The measured upside target from the recent years of consolidation projects to $1700/oz. Upon a break above $1375/oz, the target becomes $1700/oz, with a pit stop likely around $1550/oz.

 

The next strong technical targets, following $1700 are $1800 and $1900, the all-time high.

 

The biggest moves (in nominal terms) in most markets occur after breakouts to new all time highs.

 

As you can see, Gold is one of the best examples of this. Look at how Gold surged after 1971, 1978 and 2009.

 

http://www.goldseek.com/news/2018/04272018Gold.png 

 

The potential breakout through $1375/oz would be the most significant one since 2005 when Gold took out +20 year resistance to make a new multi-decade high. Sure, the breakouts in 2008 and 2009 were quite significant but Gold’s bull market was already well established. 

 

Circling back to Gundlach’s target, I don’t see anything technically that points to $2,375 being a strong target. The strongest targets are $1700, $1800 and $1900. The most significant upside move would likely be a retest of the all time high. That is roughly $525/oz of upside.

 

But upside of $1000/oz sounds better and makes for better headlines than $525/oz of upside. In other words, it will get picked up by media outlets. (Think of Jim Rickards $10,000 target which has been given quite a bit of coverage on mainstream outlets).

 

My guess is Gundlach thinks Gold is going to break to the upside and his $1000/oz upside call is a way for him to get credit for calling the breakout while remaining front and center in the media.

 

At present, Gold is trying to recover after failing to make a weekly close above $1350/oz for five consecutive weeks. The good news is the gold stocks have held up quite well and so too has Gold priced against foreign currencies. If these conditions persist during weakness in Gold then it suggests Gold would have another chance to breakout sooner rather than later. In anticipation of that breakout, we have been accumulating the juniors with 300% to 500% upside potential over the next 18-24 months. To follow our guidance and learn our favorite juniors, consider learning more about our premium service.

 

Jordan@TheDailyGold.com

 

 

 


| Digg This Article
 -- Published: Monday, 30 April 2018 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2019



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.