Best Financial Markets Analysis Article 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 highs.

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.

The SMT premium newsletter is a daily and weekend market report covering the stock market, commodities, and the precious metals markets.

Toby Connor
Gold Scents

GoldScents is a financial blog focused on the analysis of the stock market and the secular gold bull market. Subscriptions to the premium service includes a daily and weekend market update emailed to subscribers. If you would like to be added to the email list that receives notice of new posts to GoldScents, or have questions,email Toby.

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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 losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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