Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Time to take the RED Pill - 28th May 24
US Economy Slowing Slipping into Recession, But Not There Yet - 28th May 24
Gold vs. Silver – Very Important Medium-term Signal - 28th May 24
Is Gold Price Heading to $2,275 - 2,280? - 28th May 24
Stocks Bull Market Smoking Gun - 25th May 24
Congress Moves against Totalitarian Central Bank Digital Currency Schemes - 25th May 24
Government Tinkering With Prices Is Like Hiding All of the Street Signs - 25th May 24
Gold Mid Tier Mining Stocks Fundamentals - 25th May 24
Why US Interest Rates are a Nothing Burger - 24th May 24
Big Banks Are Pressuring The Fed To Losen Protection For Depositors - 24th May 24
Another Bank Failure: How to Tell if Your Bank is At Risk - 24th May 24
AI Stocks Portfolio and Tesla - 23rd May 24
All That Glitters Isn't Gold: Silver Has Outperformed Gold During This Gold Bull Run - 23rd May 24
Gold and Silver Expose Stock Market’s Phony Gains - 23rd May 24
S&P 500 Cyclical Relative Performance: Stocks Nearing Fully Valued - 23rd May 24
Nvidia NVDA Stock Earnings Rumble After Hours - 22nd May 24
Stock Market Trend Forecasts for 2024 and 2025 - 21st May 24
Silver Price Forecast: Trumpeting the Jubilee | Sovereign Debt Defaults - 21st May 24
Bitcoin Bull Market Bubble MANIA Rug Pulls 2024! - 19th May 24
Important Economic And Geopolitical Questions And Their Answers! - 19th May 24
Pakistan UN Ambassador Grows Some Balls Accuses Israel of Being Like Nazi Germany - 19th May 24
Could We See $27,000 Gold? - 19th May 24
Gold Mining Stocks Fundamentals - 19th May 24
The Gold and Silver Ship Will Set Sail! - 19th May 24
Micro Strategy Bubble Mania - 10th May 24
Biden's Bureau of Labor Statistics is Cooking Jobs Reports - 10th May 24
Bitcoin Price Swings Analysis - 9th May 24
Could Chinese Gold Be the Straw That Breaks the Dollar's Back? - 9th May 24
The Federal Reserve Is Broke! - 9th May 24
The Elliott Wave Crash Course - 9th May 24
Psychologically Prepared for Bitcoin Bull Market Bubble MANIA Rug Pull Corrections 2024 - 8th May 24
Why You Should Pay Attention to This Time-Tested Stock Market Indicator Now - 8th May 24
Copper: The India Factor - 8th May 24
Gold 2008 and 2022 All Over Again? Stocks, USDX - 8th May 24
Holocaust Survivor States Israel is Like Nazi Germany, The Fourth Reich - 8th May 24
Fourth Reich Invades Rafah Concentration Camp To Kill Palestinian Children - 8th May 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold Price Bull Market 2015 Annihilated by Strong U.S. Dollar

Commodities / Gold and Silver 2015 Mar 13, 2015 - 12:34 PM GMT

By: Nadeem_Walayat

Commodities

Within weeks of the start of 2015, the Gold price had soared to nudge above $1,300 prompting many gold bugs to start proclaiming that the long anticipated resumption of the gold bull market had begun after what had seemed like an never ending 3.5 year bear market that had contained many false dawns which had greatly demoralised many gold bugs and even worse for precious metal stock investors.


However, gold bug mania commentary such as that Apple would soon start buying hundreds of tons of gold, as much as 1/3rd of global gold supply for its new i-watch and thus push the gold price towards new all time highs proved short lived as the January peak of $1,308 was followed by a relentless grind lower to $1,150, that is even lower than where Gold began the year at $1,183.

For the reason why one only needs take a look to the US Dollar which has literally soared into the stratosphere, reasons for which I will take a close look at in a separate article.

Gold Price Forecast 2015

In terms of forecast expectations, my Gold price analysis of last December concluded in the following trend expectation for 2015.

31 Dec 2014 - Gold Price Trend Forecast 2015

Gold Price Forecast Conclusion 2015

My forecast conclusion is for the Gold price to trend lower into August 2015, targeting a low of $1050 before Gold finally makes a low for the year that propels the Gold price to above $1300, probably spiking to approx $1350 during November before correcting during December as illustrated by the below forecast trend graph.

And here's a video version of the analysis:

Current Gold Price Against Forecast Trend Trajectory

The most recent gold price close of $1,152 compares virtually exactly with the forecast trend trajectory for 13th March 2014 of $1,155. Therefore I see no reason to conduct any significant new analysis at this point in time as the forecast trend trajectory strongly implies that the main trend for the Gold price should be one of continuing to trend lower to at least $1050 during July / August 2015.

However, in the short-term probability favours a bounce of sorts so as to unwind the relentless 7 week downtrend off of the $1,130 to $1,150 support area that could propel the gold price back towards $1,200, though probably failing to reach $1190 before once more succumbing to the main bearish trend and thus a BREAK of the $1,130 to $1,150 support area.

In terms of gold investing strategies, I again refer to my original analysis:

31 Dec 2014 - Gold Price Trend Forecast 2015

Gold Investing 2015

The clear investing strategy for 2015 will be for one of accumulating into Gold during first half weakness, as ultimately the Gold price will break out to new all time highs, remember that we live in exponential money printing financial universe, it's just that 2015 or 2016 won't be Gold's years, but who knows 2017 may be the year that the long wait for Gold bugs will finally be over. In terms of exposure, well I have never been a gold bug so my thoughts in terms of exposure are along the lines of 2-3% in a mix of ETF's such as GLD and physical bullion. However that is probably because we have just come through another non Gold friendly year whereas a Gold friendly year, one in which the Gold price soars as many gold bugs hope for would ironically demand greater exposure to gold due to how bad things will have become in terms of holding other assets such as Bonds.

So how much gold to hold is not clear cut and depends on the state of ALL markets. And even then it depends on which assets one already holds i.e. asset classes that are most distant from gold in terms of ability to be printed so if you have virtually all of your wealth in cash in the bank or bonds then you need to own a lot of gold, perhaps 15%, off course if your 100% in cash then it would be wiser to diverse across a range of asset classes rather than plunge heavily into just gold. Whilst if most of ones wealth is in property then 2% or 3% should suffice.

At the end of the day I view gold exposure in terms of insurance for what drives the gold price higher (inflation & uncertainty) tends to be bad for ordinary people. And what tends to result in run away bull runs (financial crisis) tends to be very bad!

So all those praying for a gold bull run to the likes of $5,000 may regret the world they are living in that delivers Gold priced at $5,000. Much as the religiously infected amongst us who crave imminent armageddon so that they may ascend into paradise.

Ensure you are subscribed to my always free newsletter for in-depth analysis and detailed trend forecast delivered to your email in box.

Source and Comments: http://www.marketoracle.co.uk/Article49815.html

By Nadeem Walayat

http://www.marketoracle.co.uk

Copyright © 2005-2015 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 25 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 focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.

Housing Markets Forecast 2014-2018The Stocks Stealth Bull Market 2013 and Beyond EbookThe Stocks Stealth Bull Market Update 2011 EbookThe Interest Rate Mega-Trend EbookThe Inflation Mega-trend Ebook

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 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

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

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