GOLD CHARTS
There are four gold charts (source) in this article. All charts are plotted using monthly average closing prices. I will provide commentary after each chart and then summarize at the end. First chart…
Gold
Understanding Profit Potential In Gold
An analysis of any profit potential in gold requires an understanding of gold and its fundamentals. The problem is that most folks do not understand gold or its fundamentals.
“Most folks” includes investors, traders, speculators, advisors, analysts, marketers, etc.
Gold Price Targets On The Downside
GOLD PRICE TARGETS
Almost everyone else continues to focus on the next upside leg for gold. In this article I will show some charts that allow for possible downside targets within the prevailing half-century uptrend.
There are four charts. I will provide some commentary after each chart. After that, I will add some final comments. The first chart follows…
Analysts At Goldman Sachs Are At It Again
ANALYSTS AT GOLDMAN SACHS CAN’T MAKE UP THEIR MINDS
Analysts at Goldman Sachs are now predicting that recession “will push gold to $2,500”. That is an increase of 32% from current levels.
How much confidence can one have in this latest proclamation? Not much; for several reasons.
Three Questions About Gold Price Manipulation
There are three basic questions that need to be asked, and subsequently answered, regarding gold price manipulation. Here are the three questions:
- Is there an ongoing attempt to suppress the gold price?
- If so, is that attempt successful?
- If it is successful to any degree, does it matter?
Gold Gains In Price Only – Not In Value
GOLD GAINS IN PRICE ONLY
It has been said that the more things change, the more they remain the same. That is certainly true of gold prices.
Let’s look at the following three charts in succession. Then we’ll talk about them…
Not About Gold – All About The Dollar
IT’S NOT ABOUT GOLD
There is a lot of talk centering on the US dollar and its “ultimate end as the world’s reserve currency”.
There is also additional talk about what this means with respect to the price of gold, but that is just talk.
The price of gold tells us nothing about gold. The only thing a continually rising gold price tells us is that the US dollar continues to lose purchasing power. (see What’s Next For Gold Is Always About The US Dollar)
Problem With Predictions For $20K Gold
PREDICTIONS FOR $20K GOLD
Gold at $20,000 is the latest price prediction from a high profile analyst. The article I read makes a strong case for how the gold price could go to $20,000 oz. if the US dollar loses ninety percent of its current value.
That part of the explanation is correct. And it is what I have been saying in my articles over and over again; namely, a higher gold price reflects the loss in purchasing power of the US dollar that has already occurred – nothing more, nothing else.
Gold At $2000 Or $600? No Difference
GOLD AT $2000
Gold flirted briefly with the $2000 number last month. At $2043 oz., it was several dollars shy from matching its peak price eighteen months earlier at $2058 oz.
With the current gold price at $1958 oz., the $2000 number is the sweet midpoint of that range. It is a nice round number and seems to be the price most gold traders and investors are focusing on at this time.
It is probably a good idea, therefore, to see if the $2k gold price holds any special significance other than what most in the gold community are thinking about.
And it does.
Gold’s Next Big Surprise
Gold’s next big surprise could be on the downside. Continued strength in the US dollar throughout the current Russian – Ukrainian conflict is the indicator.