Almost everyone thinks gold has bottomed. That it’s going to keep on heading literally straight up.
And almost everyone also thinks I’m dead wrong on gold.
But the facts of the matter are these:
A. Although I did not issue a buy signal, I nailed the bottom in gold again, at the $1,044 level in late November/early December last year.
B. I’ve nailed the recent trading range, the recent sideways action between roughly $1,220 and $1,280. A $60 range that no one in their right mind, except day traders, should try to trade or invest in.
C. And soon, you will realize that my short-term forecast will bring gold back down to below $1,200, the $1,160 to $1,180 level …
D. That when you see those price levels for gold, you should start backing up the truck!
E. Furthermore, there is nothing, and I mean nothing, that yet convinces me that my long-term forecasts for gold will be wrong and that gold will hit at least $5,000 by the year 2020.
Keep in mind my models on gold have never, and I mean never, missed one single major turning point since 1978. Not one.
For the short-term downward bias in gold right now, keep your eyes on the $1,206 level, then $1,191.50.
A close below the second figure should result in a test of what should now be major long-term support at the $1,160 level, with worst case support coming in at $1,120.00.
Silver, platinum and palladium will all generally follow gold’s lead.
On the upside, gold MUST close above $1.307.75 on a weekly basis, at a minimum to suggest further immediate upside action. Anything short of that would be just another massive failure.
All figures quoted are basis the nearby June futures contract.
Now, let me discuss with you for a moment the mining sector. Here too, I caught the bottom, although I was not aggressive in issuing buy signals. With the exception of two senior miners I recommended for my Real Wealth Report members — who just yesterday grabbed gains of 46.4 and 61.3% …
Like gold, I have been waiting for what I call the truth serum to come … that first major pullback that shakes out all the initial weak long positions …
And where the savvy investors back up the trucks to pile the precious metals on, and, the very best of the best mining shares.
That day is coming. Gold and the other precious metals noted above are now in pullback and consolidation modes. Their next legs up are going to be like a three-stage rocket, blasting gold, for example, to well above $1,400.
And for mining shares: Mark my words: If you think the recent rally was strong, you haven’t seen anything. Once miners pullback and hold support per my neural net artificial intelligence forecast model here of the GDX …
Then the next leg up for miners will unfold, and I expect it to triple the index’s value from the lows, more than tripling your money — in a short period of time, as little as three months.
Longer-term, miners will outperform gold, silver, oil, tech stocks, blue chips … and just about any other sector or asset class you can imagine.
It is and will be by far, the most profitable sector to trade and invest in, going forward.
More money, no, more FORTUNES, will be made in miners than any other sector.
But wait for my signals. Do not buy now. Instead, trade like a pro and buy the first major pullback. That’s how you slash your risk and dramatically multiply your profit potential.
Best wishes and stay tuned …
Larry
related:
How to Use the CoT Report in Gold Investing?
Larry Edelson, one of the world’s foremost experts on gold and precious metals, is the editor of Real Wealth Report and Supercycle Trader.
Larry has called the ups and downs in the gold market time and again. As a result, he is often called upon by the media for his investing views. Larry has been featured on Bloomberg, Reuters and CNBC as well as The New York Times and New York Sun.
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