Last week I told you about gold’s long-term prospects: $5,000 at least.
And if you’ve been following my shorter-term forecasts for gold, then you know that they’ve been spot on. I’ve been calling for an extended short-term cycle low — which we got on December 15 at $1,124.30 in the February 2017 futures contract — and then a rally.
That rally is now underway, and this past Friday gold hit as high as $1,207.20.
Here was my previous AI Neural Net forecast for gold, then I’ll show you an update:
You can see the rally through January 12 on this chart. You can also see how the rally should stair-step higher in mid-April before a mild pullback sets in.
How high can gold go by then? Not a whole lot higher. Maybe $1,350 to $1,400.
Now, here’s my latest AI chart for gold: The shape is changing a bit, as it should be, but the overall forecast remains the same: A rally in April before pulling back. Note that this chart is a tad behind the action, since my live forecasts and AI charts are reserved for members of my paying services.
So what’s causing the rally? In gold, and other precious metals? Pick your flavor …
I won’t cover them in detail here, again, that’s for members. But look around the world …
Still nasty politics in the U.S.
The rising tide of my war cycles, which I have warned you about repeatedly, even telling you they were due for another accelerated rise right now. And look, we have …
Trump/Putin still wrangling.
4,000 American troops just sent to Poland, the biggest buildup in Eastern Europe since the Cold War.
Syria, Aleppo, Mosul and more.
High tensions between the U.S. and China over the “One-China policy” and Taiwan. And the South China Sea.
The horrendous humanitarian/refugee crisis in Europe, where men, women and children are dying.
And more.
Is it any surprise there are plenty of fundamentals building to drive precious metals higher? Have they bottomed? It’s too soon to say but I like the action.
What about other markets, for instance equities, the Dow Industrials? The Dow is getting ready to roll over.
You can see it right here, on my latest AI chart for the Dow. It should be rolling over and should head lower into late March before bottoming.
Just a pullback. No crashes. Support at 17,500 to 18,500.
That may seem like a steep decline, even to 18,500, and it is worth getting out if you are heavily invested, or hedging with an inverse ETF.
But it’s not the disaster many are calling for. Once it bottoms, the capital flight into the U.S. will resume in spades and the Dow will be off to 25,000, then even higher, to at least 32,000.
Stay tuned, very tuned in to my writings and analysis of the gold market. In fact, of all major markets. Plus, as I noted last week, be sure to read my E-wave columns each Monday, Wednesday and Friday afternoon published around 4 p.m. EST. They are short, but very inciteful.
Best wishes,
Larry
It’s so important that you get your free copy of “STOCK MARKET TSUNAMI” right away, click here to download now!
…related from Frank Holmes with 5 charts:
The bullish case for gold in 2017
