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Part II Metals Report Goes Out Today

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In here is the long-term view for gold using the database back to 1264. The prospects for gold bottoming in 2013 are not dead yet. There was a chance for a low in January 2013 but that was broken.  What appears to be shaping up is an extension in the overall market. The $4000-$5200 target zone has not changed. A rally up to that area is still within the bounds of normal technical rally. Exponential moves are only possible if $5200 is exceeded.

When 2012 closed higher than 2011, that was basically the kiss of death. That allowed the extension for a 3-year correction to move into 2015. Had 2011 remained as the intraday and highest annual closing, then a correction of 2 years would have been 2013 with a max into 3-years for early 2014. The higher closing at the end of 2012 without electing a bullish reversal expands the time line.