The ongoing current A rise that started last November is the strongest in this bull market and the strongest since 1999. Since this is an abnormally strong 'A' rise in an abnormal world recession, if gold reaches a new record high above $1004, gold will most likely be embarking on the start of a great bull market rise.

Gold could then jump to the $1200 level as its next target. Keep an eye on $910 as gold's 'A' rise is very strong above it (see Chart 1).

GOLD: An eight year phenomenon

Further backing this up is gold's ongoing bull market, which turns eight years old this month. The eight year mark has been a consistent low time for gold going back to the late 1960s when gold began trading in the free market.

Chart 2 shows this best. Note the pattern. It has repeated four times since 1969 and the fifth one is possibly happening now. Important lows vary from 7 years to 8 ½ years following the previous low, with the average being eight years. This recurring pattern tells us that the low could've been last November's low, three months shy of eight years, or it could still be upcoming. The long side would be a low this Summer.

The point is that gold's near or at an important low time. This means we want to buy more gold during weakness this year because gold is set to reach a record high, and the $2000 level would eventually be a likely target, near the top of the mega upchannel (see Chart 2 ).

In other words, whether it was last November's low or a low upcoming this year, the gold price is getting closer to the start of an even greater bull market rise. We should, therefore, have all of our gold positions completely bought well before year end.

By Mary Anne & Pamela Aden

www.adenforecast.com

Mary Anne & Pamela Aden are well known analysts and editors of The Aden Forecast, a market newsletter providing specific forecasts and recommendations on gold, stocks, interest rates and the other major markets. For more information, go to www.adenforecast.com

Aden_Forecast Archive

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

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.