Monday, 15 August 2011

You Haven’t Seen Anything Yet

We have to admit $1764 is a significant level for gold. Above that level and the $1800 plus recent high comes into focus. Above that level the hyperbolic potential of the gold price comes into focus.
Some of the finest minds in gold anticipate a very short but brutal reaction in price. The dollar market seems to not agree with a gold correction here.
Market wise, the Fed has thrown the US dollar into the wind. Under .7400 the dolllar denies a reaction in gold at these levels.
When gold broke out above $524.90 I asked you to please cease trading as gold had moved from phase 1 into a runaway price phase 2. It is this phase that has given you prices in excess of $1650. $1764 has the same significance as $524.90 because it represents phase 3, the point when a runaway price market for gold would gain exponential properties. Because $1764 is such a significant number, you can expect one of the more serious price battles before the price departs to Alf Fields’ and Armstrong’s predictions.
To sum up the situation, you haven’t seen anything yet.