Posted on 01 August 2012 with no comments from readers
Alf Field, the favorite technical chartist of chief gold bug and veteran trader Jim Sinclair, who got the recent correction from the $1,923 all-time high right last September is forecasting that gold is going to head rapidly upward to $4,500 an ounce.
Mr Sinclair, whose own prediction of $1,650 by early 2011 made a decade earlier was spectacularly almost spot on, commented:’ I have long held that the best technicians simply know the market of their interest and use TA as a point of focus…The prices of $3,500 – $4,000 and $4,500 are now in the market’s focus.’
For that to happen there would need to be a major financial disaster. Something like a massive stock market crash followed by a huge global money printing exercise to flush debt out of the system. That would impact hugely on the price of gold and silver as monetary metals that cannot be printed by central banks.
‘The low gold price on 23rd July 2012 was $1564, certainly not a new low,’ writes Mr. Field. ‘Yet the gold price started rising almost immediately.
‘Within a couple of days the gold price had broken upwards through the downtrend line that had been in place since the end of February 2012. This is a very positive development which will be greatly enhanced if the gold price continues to move strongly upwards over the coming days and weeks.
‘The bottom line is that we now have a really strong probability that the correction which started at $1,913 on 23th August 2011 has been completed both in terms of Elliott waves,
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and also in terms of time elapsed. If this is correct, the gold price should soon be expressing itself in violent upside action as it moves into the third of third wave which is still targeted to reach $4,500.’
That’s what the technical charts for gold are telling us according to the guy who ought to know.