Best of the Week
Most Popular
1.Bitcoin War Begins – Bitcoin Cash Rises 50% While Bitcoin Drops $1,000 In 24 Hours - Jeff_Berwick
2.Fragile Stock Market Bull in a China Shop -James_Quinn
3.Sheffield Leafy Suburbs Tree Felling's Triggering House Prices CRASH! - Nadeem_Walayat
4.Bank of England Hikes UK Interest Rates 100%, Reversing BREXIT PANIC Cut! - Nadeem_Walayat
5.Government Finances and Gold - Cautionary Tale told in Four Charts - Michael_J_Kosares
6.Gold Stocks Winter Rally - Zeal_LLC
7.The Stock Market- From Here to Infinity? - Plunger
8.Ethereum (ETH/USD) – bullish breakout of large symmetrical triangle looks to be getting closer - MarketsToday
9.Electronic Gold: The Deep State’s Corrupt Threat to Human Prosperity and Freedom - Stewart_Dougherty
10.Finally, The Fall Of The House Of Saud - Jim_Willie_CB
Last 7 days
The Precious Metals Bears' Fear of Fridays - 23rd Nov 17
UK Economic Austerity, Bloodletting and Incompetence - 23rd Nov 17
Stocks Are At The End Of The Line – Prepare Yourself Now! - 23rd Nov 17
Some Traders Hit. Some Traders Miss. Here's How to be Part of the 1st Group - 22nd Nov 17
Geopolitical Risk Highest “In Four Decades” – Global Gold Demand to Remain Robust - 22nd Nov 17
Relationship between Crude Oil Price and Oil Stocks - 22nd Nov 17
Harry Dent’s Gold Prediction Invalidated - 22nd Nov 17
Gold Sector is On a Long-term Buy Signal - 21st Nov 17
Saudi Arabia and Israeli Alliance Targets Iran - 21st Nov 17
What History Says for Gold Stocks in 2018-2019 - 21st Nov 17
US Bond Market Operation Twist by Another Name and Method? - 21st Nov 17
Learning from Money Supply of the 1980s: The Power and Irony of “MDuh” - 20th Nov 17
Trump’s Asia Strategy, Goals and Realities - 20th Nov 17
Crude Oil – General Market Link - 20th Nov 17
Bitcoin Price Blasts Through $8,000… In Zimbabwe Tops $13,500 As Mugabe Regime Crumbles - 20th Nov 17
Stock Market More Correction Ahead? - 19th Nov 17
Universal Credits Christmas Scrooge Nightmare for Weekly Pay Recipients - 18th Nov 17
Perspective on the Gold/Oil Ratio, Macro Fundamentals and a Gold Sector Bottom - 18th Nov 17
Facebook Traders: Tech Giant + Technical Analysis = Thumbs Up - 18th Nov 17
Games Betting System For NCAA Basketball Sports Betting - Know Your Betting Limits - 18th Nov 17
Universal Credit Doomsday for Tax Credits Cash ISA Savers, Here's What to Do - 18th Nov 17
Gold Mining Stocks Fundamentals Q3 2017 - 17th Nov 17
The Social Security Inflation Lag Calendar - Partial Indexing - 17th Nov 17
Mystery of Inflation and Gold - 17th Nov 17
Stock Market Ready To Pull The Rug Out From Under You! - 17th Nov 17
Crude Oil – Gold Link in November 2017 - 17th Nov 17
Play Free Online Games and Save Money Free Virtual Online Games - 17th Nov 17
Stock Market Crash Omens & Predictions: Another Day Another Lie - 16th Nov 17
Deepening Crisis In Hyper-inflationary Venezuela and Zimbabwe - 16th Nov 17
Announcing Free Trader's Workshop: Battle-Tested Tools to Boost Your Trading Confidence - 16th Nov 17
Instructions to Stop a Dispossession Home Sale and How to Purchase Astutely at Abandonment Home - 16th Nov 17
Trump’s Asia Tour: From Old Conflicts to New Prospects - 16th Nov 17
Bonds And Stocks Will Crash Together In The Next Crisis (Meanwhile, Bond Yields Are Going Up) - 16th Nov 17
A Generational Reset That Will Redistribute Wealth to the Bottom 60% Is Near - 16th Nov 17
Ethereum (ETH/USD) – bullish breakout of large symmetrical triangle looks to be getting closer - 16th Nov 17
Gold’s Long-term Analogies - 16th Nov 17

Market Oracle FREE Newsletter

Traders Workshop

Gold Homes in On $1333 Minimum Forecast for 2010, Silver's Leveraged Breakout

Commodities / Gold and Silver 2010 Oct 02, 2010 - 08:20 AM GMT

By: Nadeem_Walayat

Commodities

Diamond Rated - Best Financial Markets Analysis ArticleThis week the Gold price blasted through $1300 resistance to close at £1319 on Friday with most other commodities either leading or lagging Gold's bull run such as crude oil soaring during the week to close up more than 7% at $81.61.


The strong drive higher to $1319 now puts gold within touching distance of the forecast minimum Gold target for 2010 of $1333 as per the January 2010 Inflation Mega-trend Ebook (FREE DOWNLOAD) and subsequent posting (Gold Analysis and Price Trend Forecast For 2010 )

Gold Price Forecast Conclusion

The two key conclusions are:

1. That the current correction is targeting $1050 to be achieved during February 2010

2. That Gold is targeting an Impulse Wave 5 into late 2010 peak of at least $1333 which remains as per the original forecast of 1st November 2009.

Both the Dollar forecast and the seasonal trend are supportive of the view for Gold price relative weakness into July / August 2010, following which the Gold price is expected to break out to a new high. This suggests that Gold may trend sideways for the first half of 2010 into July / August as the following graph concludes:

Charts courtesy of StockCharts.com

Gold Beyond $1333

As mentioned earlier, $1333 is just a target for 2010, the Gold price may even reach as high as $1,400 this year, enroute towards my longer-term target of $2,000 which would basically represent a 85% gain on the current price of $1081 and much more so when Gold stocks are brought into the equation though there trends are also subject to that of the general stock market.

Whilst the trend now demands an in-depth analysis to update the prospects for the Gold price into 2011, however a quick analysis of trend shows gold short-term overbought (MACD) but little signs for an imminent major reversal and given that 3 months remains, gold $1400 is achievable during 2010, and where gold goes silver follows with the final speculative spurts nearly always being LEVERAGED to the gold price trend and thus requiring far closer monitoring for market timing purposes as silver peaks can come and go in a flash (for more on Silver's 2010 trend see the FREE Inflation Mega-Trend Ebook).

Whilst gold priced in dollars has soared to new highs over the past month, unfortunately for investors in most other currencies including sterling the picture is that of a little more conservative recent trend that has yet to make a new 2010 high as the below graph illustrates, which highlights the importance of trying to gauge ones own currencies trend against that of the worlds reserve currency, the U.S. Dollar in which most of the worlds major goods and commodities are traded.

U.S. Dollar Meltdown

The U.S. Dollar bull market trend started to evaporate following the early June peak, an in-depth analysis is now pending to determine the probable path into 2011 which will follow the ongoing sequence of analysis with the British Pound next then UK Interest rates. To receive the analysis and forecasts in your email in box ensure you are subscribed to my always free newsletter.

Gold and Delusional Deflationists

Whilst Gold has continued to trend higher during 2010, the delusional deflationists have continued to reinvent themselves from being gold bears to now having been gold bulls all along. I have written at length on the deflation delusion over the past year so without repeating I refer to the following recent articles -

The linked analysis basically concludes that there has been NO Deflation despite continuous stream of deflationary commentary form academic economists (paid sales men for the bankster fiat money printing system) that populate the mainstream press with much of their commentary and conclusions then further regurgitated by the BlogosFear.

Whilst my analysis is primarily focused on the UK economy, however Puru Saxena recently wrote an article on the US Economy that is pretty close to many aspects of my take on bogus UK deflation expectations (24 Sep 2010 - Deflation Reality or Urban Myth? ). The most notable item in the article is the graph on total commercial bank lending that is expanding (inflating) rather than contracting (deflating), so much for debt deleveraging deflation!

I am sure there are many more such examples of the illusion of debt deleveraging deflation especially where consumers are concerned given the highly artificial government supported U.S. housing market, which follows on from more than a year of debt deleveraging deflation mantra from pseudo economists that contribute towards the primary reason why over 90% of all traders lose which I touched upon recently (10 Sep 2010 - The Real Reason Why 90% of Traders Lose ).

UK Inflation Forecast 2010

UK CPI Inflation at 3.1% for August 2010 is EXACTLY in line with my trend forecast for 2010 as of December 2009 that projected CPI above 3% inflation for most of 2010 and specifically CPI inflation of 3.1% for August 2010. My analysis since November has been warning of a spike in UK inflation as part of an anticipated inflation mega-trend (18 Nov 2009 - Deflationists Are WRONG, Prepare for the INFLATION Mega-Trend ) that culminated in the forecast of 27th December 2009 (UK CPI Inflation Forecast 2010, Imminent and Sustained Spike Above 3%) and the Inflation Mega-trend Ebook of January 2010 (FREE DOWNLOAD) as illustrated by the below graph.

UK Inflation August 2010

Current in-depth analysis is under way on forecasts for the British Pound and UK Interest Rates, to receive these in your email in-box ensure you are subscribed to my always FREE Newsletter.

Comments and Source: http://www.marketoracle.co.uk/Article23181.html

Your gold and silver bull market monetizing analyst.

By Nadeem Walayat

http://www.marketoracle.co.uk

Copyright © 2005-10 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 20 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis specialises on UK inflation, economy, interest rates and the housing market and he is the author of the NEW Inflation Mega-Trend ebook that can be downloaded for Free. Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication. We present in-depth analysis from over 500 experienced analysts on a range of views of the probable direction of the financial markets. Thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Nadeem Walayat Archive

© 2005-2017 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

Brian
07 Oct 10, 17:16
UK Interest Rates

Hi,

As always very good analysis and you continue to be proven correct in your forecasts however I prefer to keep an open mind going forward to the deflation vs inflation vs stagflation arguments. Do you have an opinion or forecast on UK interest rates over the next 2 years?

Thanks for an excellent website!


Brian
07 Oct 10, 17:19
To overpay or not on my UK mortgage?

Hi,

Would be interested to know your thoughts as regards holding some cash and whether its a good idea to use any excess to pay down the mortgage in the event of increase rate risk going forward?

I have spare cash and am considering what to do with it


Nadeem_Walayat
07 Oct 10, 21:31
uK interest rates

My next indepth analysis will be on USD and UK interest rates.

Which will answer the above,

Best

NW


Eiji
09 Oct 10, 16:45
GBP gold prices

Hello Nadeem,

Can you tell me what you expect gold prices to be at by the end of 2011 in GBP and whether you expect any large pullback before then?

Thank you.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife