The Gold Forecast ... Volatility Squared ... New High Price and New Lows Ahead

http://www.thegoldforecast.com


Although both silver and gold closed lower on the day, today's trading closed a positive week. Gold closed up .83% this week at 1635.80. Silver had an even stronger showing, closing at 30.99.

Today's trading activity can be best characterized as a knee-jerk, push-pull reaction to fundamental news entering the market.

Trading modestly higher overnight the market came under pressure as the jobs report was released showing a greater than expected number of non-payroll jobs added. This would propel gold to its intraday low (off $30) on the day.

The credit rating agency Fitch downgraded both Spanish and Italian debt from its A+ rating to a AA- rating. This reignited safe haven buying and pushed the precious metals off their lows.
Today's video will explore and define target areas for this current trade. Using Fibonacci retracement we will look at three areas of interest.




First we will look at support at 1610 and then we will look at the two resistance areas of 1681 and 1746. Although trading higher on the week, gold has been unable to breach 1680, which is maintaining its hard resistance edge. I do expect gold to be able to overtake that price and our next significant level and the target for this trade is around the 1646 area. We will also explore our longer-term views on our major Elliott wave count as well as our major targets through 2012.

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• gold forecastgold investment
• candlesticks and gold

[Andronichuk]

One more dip to complete the C wave... thats all it needs. MACD Divergence and a candle bottoming pattern... thats the ideal Buy signal you want to see

[garywagner11]

@Andronichuk You could in fact be right. I thought this also might be the cast ... but ...

We have just completed a Major 5 and intermidiate fifth wave. It is the Major that has me concerned about 1 more corrective wave,

This Major 5th wave was a multi year move, the correction should take more than a few weeks to complete. As a gold bull I hope you are right, as a technition I must state the facts GSW

[eyadbaik1]

do you mean the price will go down for 1450 as an excelent support or it may go to 1300

[Andronichuk]

@garywagner11 Take a look at Silver, that is the market I personally am looking to jump in... compared to Gold, in my opinion, Silver is heavily undervalued. ABC is clearer and in terms of time... looks more "correct"

[indignant99]

Re-listen to your own video... we have not reached Nov. 2011 yet.

[Sempertacsil]

I completely agree with rick. Gold's recent consolidation resembles more of a triangular wave 4 of a decline that began in August. And the rally from late august to early september seems to be an a-b-c counter move. As I mentioned before, those exposed to euro debt are buying up US Dollars to pay for those debt. Why? USD is the most liquid currency out there. I might also speculate that institutions holding gold are liquidating their positions to raise cash--ala 2008!

[rick071100]

I just am so curious to know why is it that you don't see the recent down move and the Friday up move as froming a bear flag instead of a bullish consolidation?

Thank you for your reply in advance.