Gold & the Inversion

QUESTION: Marty, Long time reader.  According to your September 15, 2011 issue, the computer, in its first writing since 1999, pontificated it’s forecast on gold. On page 14 the computer said:

Utilizing a composite structure in cyclical timing analysis, the key months for a turning point in NY GOLD will be 10/2011 and 02/2014.

With everything happening in the press about gold, do you believe we’ll see a major inflection point in gold this Februrary?

Thanks,

S

ANSWER: Yes. But the first quarter is plagued by 3 Directional Changes warning of choppiness. The intraday low is still last year. However, the low in gold reached pretty close to our minimum projected target we gave back in 2011 of 1150. The low is 1151. So from a price perspective, the model is satisfied as far as the minimum objective. Now it is TIME. If gold drops to $890 that is fine. It will not change the cyclical trend – that is just a price objective on the max side.

NYGOLD-M 2014-01

The Goldbugs hate my guts when I say down. When I say UP, I become a hero. Gold will rise as capital flees the public sector and people begin to question government on a rising basis around the globe. It is not going to be gold up everything else down. Look closely at gold’s performance. It rallied from a 2008 low into 2011. Gold rallied with the downside of the ECM and not the bull leg as was the case going into 1980. That wave peaked in 1981.35. Gold has INVERTED and is starting to rally counter-trend to the economy. This is NOT a demand-push rally.

ECM2011