Just as a preface let's point out that the fundamental driver of this leg up in gold is the same driver that it's been for the entire 10 year bull market; currency debasement.
Only now every country in the world is getting in on the race to the bottom.
That being said it's the dollar's turn to collapse.
The Euro had its spell earlier in the year and now that fiat$cancer has infected the world's reserve currency -
The a long term chart of the US dollar gives a clear picture of what is unfolding.
About every 3 to 3 1/2 years the dollar drops down into a major cycle low.
This smaller daily cycle tends to run about a month (18 to 25 days) trough to trough.
Noted in the above chart the intermediate dollar, and gold cycle for that matter, runs on average 20 weeks. Last week marked the 9th week of the dollars intermediate cycle. It's way too early to look for a major bottom yet. If the cycle runs the "normal" 20 weeks then we won't get an intermediate bottom until late December.
The dollar crisis intensifies this winter gold will not be sitting still and it certainly won't be topping. ? As the dollar crashes down to test the `08 lows I expect we will see gold rocket to at least $1450 and $1550ish is probably a more realistic target.
But don't forget the larger three year cycle low isn't due to hit until next spring/summer. The dollar rally out of the yearly cycle low in December will also be a dead cat bounce, although it should last at least a month or two, but ultimately it too will fail and the true consequences of Bernanke's monetary policies will come home to roost as the dollar crashes down into the three year cycle bottom and the currency crisis reaches a climax next year.
That will drive the final leg up in this huge C-wave advance, possibly as high as $1700 -$1800. by T. Connor thanks good info
The COMEX December gold futures contract closed up fiat$23.80 Wednesday at $1370.50 - trading between fiat$1350.00 and fiat$1375.70/oz. -
October 13, p.m. excerpts: (from Dow Jones) -- Gold futures settled above $1,370 for the first time as heightened expectations of Federal Reserve money printing and wider-reaching concerns about global monetary easing increased the metal's allure as not only a dollar hedge but also a broader alternative currency. December gold rose 1.8% to settle at a record $1,370.50 a troy ounce on the Comex, reaching as high as $1,375.70, the strongest ever intraday price for a most-active contract..
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