GOLD: What’s It Going To Be: A Dash to $15,000 – Consolidation HERE

Peter Grandich: A technical look at gold for a moment is worthy at this time:

Gold’s incredible rally after breaking out from a nearly one-year corrective/consolidation phase brought us to a quite overbought state on the daily charts noting by point A. MACD (Point C) has also turned over and the space between price and the 200-Day M.A also suggests consolidation.

I depend far more on the weekly charts since I don’t usually trade gold in and out. Here, we see a much more constructive picture with RS (Point A) not even reaching overbought in this move up. The $1,800 area is key resistance (Point B) and spending some time under it shall only benefit us bulls over the longer term. MACD (Point C) has only begun to move up in earnest.

While some more backing and filling is actually good for those of us who see $2,000+ gold in our future, the “mother” of all bull markets should continue to limit most of its surprises to the upside.

Back in the early part of 2011, I suggested the U.S. Dollar could rally and cause the U.S. Dollar Index to reach the 83-84 area (Point A) but would consider such a move a mere “dead-cat-bounce” in a secular bear market that should eventually lead to new lows below 70 (Point B). With the Euro the single biggest component of the Index and it continues to have its own turmoil, it would come as no surprise to me that the Index stay fairly close to its key moving averages (Point B) for the near-term. Longer-term, there’s only one song to sing for the dollar.

Ed Note: If you want to read about a mining stock that has become Peter Grandich’s “single largest holding ever (by far now) go HERE and scroll down to the chart of Oromin Explorations

$15,000 GOLD

by Value investor Jean-Marie Eveillard

Jean-Marie Eveillard who overseas $60 billion was quoted in King World News yesterday saying:

“There are people who have figured out that in view of the enormous amount of money printing, which has taken place over the past three or four years, a price of $15,000 an ounce for gold would not be absurd.” “I’m not sure they are right, because I have not studied how they came to that conclusion, but I think what is true is there has been gigantic money printing, which will of course help the price of gold.”

“It’s been a fairly quick move over a shortspace of time”

by Citi technical analyst Tom Fitzpatrick

Tom Fitzpatrick has long argued that gold prices could surge. Indeed, he sees prices rallying to $2,500 within the next few months.

However, he cautions that prices are unlikely to see a straight line up, especially considering how quickly prices have surged lately.

“It’s been a fairly quick move over a short space of time,” Fitzpatrick says. “We also get a bit of a push on the backs of the announcements of additional QE, but we do look to be losing a little bit of momentum short-term.”.

“Given where we’ve come from, gold has risen from almost the $1,500 level to the $1,800 area, could gold retrace back down to $1,675? It’s not at all impossible (see chart below). In the overall scheme of things it would just be a decent backfill.”

The Simple Case for Gold

by Charles Goyette

Charles Goyette is the author of the New York Times bestselling book, The Dollar Meltdown and the recent blockbuster release, Red and Blue and Broke All Over.

Charles case for Gold is this: Unlimited money printing means only one thing: Unlimited gold prices!

As Charles says, just connect the dots:

As the U.S. Fed prints dollars in unlimited amounts, it devalues the dollar.

As the European Central Bank prints unlimited amounts of euros, it devalues the euro.

As the Bank of Japan jumps in to print unlimited quantities of yen, it also devalues the yen.

And as these three major currencies go down, so do virtually all other paper currencies in the world. “There’s only ONE kind of money they cannot devalue: GOLD. As paper currencies fall, gold surges. No two ways about it.”