Where's Gold Going?
by Richard Russell
by Richard Russell: Something's
thing to eternal life we will ever see on this earth is a government
program." ~ Ronald Reagan
10, 2012 Where's gold going? As you can see on
the chart below, gold has formed an almost perfect rectangle. The
top of the rectangle has been tested three times, and each time
gold was turned back. Obviously, there are some powerful groups
(the shorts) that do not want to see gold move into and above the
1800s. At the bottom of the rectangle, gold has found support at
approximately 1575. For the last two weeks, gold and the dollar
have moved in unison, which is most unusual. At the bottom of the
chart we see the slow stochastics, which are in the neutral or middle
zone. Since the bull market in gold is still in force, I would expect
gold, ultimately, to break up and into the 1800 + zone.
After rising for 12 years in a row, I expect the bull market
in gold to produce a final upside blow-off. Bull markets don't usually
die with a whisper and a snore.
to a final upward explosion, we will see a sharp correction,
and I have expected something like that for gold. The final correction
serves to clear the air and readies the market for a climactic rise.
One reason why we may not see the usual correction in gold is that
most of the world's central banks are now accumulators of gold on
any weakness. Both China and Russia are now eager buyers of gold
both have a small percentage of gold in their reserves. It's
also significant that most Americans are afraid of gold, even though
it has risen year after year for twelve years. Imagine the following
a stock would enjoy if a given stock had risen twelve years in a
© 2012 321 Gold