GOLDBUGS AMEX Goldbugs Index (GOLD)

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Gold & the $1,000 Level
By: Marty Armstrong | January 5, 2018

QUESTION: Mr. Armstrong; At what point does a crack below $1,000 come off the table of possibilities?
JS


ANSWER: When we elect the next Yearly Bullish Reversal, and OR, exceed the 2018 high during 2019. Because we have had this split in the high close being 2012 and the intraday high in 2011, it has made it difficult to declare it is over as they say until the Fat Lady sings. If we use the 2012 high closing, then the maximum reaction is 3 years and that places the 2015 low in good standing for the final low. But we have been unable to elect the Monthly Bullish and in fact, it provided the intraday high in 2017.


Consequently, a 3-year reaction from the 2015 low gives us 2018 for a reaction high. If we do NOT get through strategic overhead resistance, then we can still turn down in 2019 and break $1,000 in the 2020-21 period when the dollar could be making its major high. That can be the event that forces gold down, cracks $1,000 but holds the 1980 high of $875 at worst, and then slingshot to new highs as the Monetary Crisis Cycle comes into play.

Keep in mind that reactions are 1 to 3 units of time. Since 2017 bounced off of the 1362.50 Monthly Bullish Reversal, this also warns that we may not make a new intraday high in 2018 unable to exceed the 1377.50 high of 2016. We may be looking at just an inside year at first.

The key is the alignment of all markets. Those who keep preaching the demise of the dollar fail to grasp the international events. Both war exists externally and economic deflation. Trump's tax reform will help counter-balance the US economy against the world.

• DiscoverGold

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