If you aren't already in, Monday or Tuesday should represent an exceptional buying opportunity as gold moves into its final intermediate cycle bottom.
Now that the 38% retracement has been
breached I would look for a final exhaustion move to test the 50% level
early next week as we move into the elections.
At that point sentiment should be
completely washed out and gold will be set up for an explosive move to
test the all-time highs by the end of the year or early January.
Miners should deliver even bigger
gains as I expect them to break out of the bull flag that's been forming
over the last 4 weeks and generate a 25-30% rally to test their all-time
We are moving into one of those rare
buying opportunities that only come around once or twice a year. This is
that point I warned about in my last post where one has to ignore
the media and nonsense about QE3 not working. It is going to work, and
it is going to work extremely well. I fully expect it to drive gold to
$4000 by mid 2014.
This is purely a profit taking event,
nothing more. These situations happen like clock work about every 20-25 weeks, as
you can see in the chart below. Gold is now very late in the timing band
for that major cycle bottom.
I'll have more in the weekend report and I think the odds are very high we get a final bottom by mid week.
SMT premium newsletter. $10 one week trial.