Once I saw gold maintain a corrective type of a move I knew that any bearish scenario would have to be put into the deep freeze for now.
There are three spikes that show but you can ignore them as they don’t show up in Line type settings.
Many contrarians have been calling for a higher gold price and I’m sure the gold wave counters have cranked up their bullish wave counts as well.
The above wave count is about as bullish as I can show you, as this may be part of another zigzag bull run. This wave count can also be a wave 3-4, but I like to work with only one option at a time.
Yes, the commercials are net short and it will get worse if the gold price keeps rising.
Regardless what your long term gold price forecast is the entire wave counting community has to decide if this 3.5-year bullish phase is just a big bear market rally?
In the near term and if gold has the legs, then $1600 could be the next price target.
What nobody talks about is that the price of gold is soaring while solar cycle 24 is still crashing! This is not a good long term picture as the gold price could be repealed down, by the start of solar cycle 25.
It’s still a year or so before solar cycle 25 starts, even though the first official sunspot of solar cycle 25 has already arrived.