Since the August 2018 bottom has now charged up getting very close to the $1400 price level. By the end of the day, gold may breach the $1400 price level.
I have a horizontal line at the $1375 price level which I see as being very special. The main reason why $1375 is special because it’s a 1.618 ratio from the 1980 gold peak of $850.
The majority of gold bugs are jumping for joy as gold is finally breaking out!
The problem with any bullish run is that when a small majority thinks it’s a bull market break-out it can also be the end of a bigger bear market rally.
The commercial hedgers don’t see a bull market as they have a large net short positions in gold at this time. If the majority are just waking up to the present bullish phase, they are pretty late already. A bullish vertical move is never a sign to jump in because they always run out of steam most of the time.
Many believe that the 2011 peak was some ordinary peak so they are just looking for a gold market correction. 2011 is my wave 3 in Cycle degree and I have not been forced to change it just yet! There is no way that a Cycle degree correction has already completed, so gold could turn south with little effort.