Gold Intraday Correction Update

Gold was dancing around at the peak, and a fast spike also formed. The spike sealed golds fate, at least in the short term. Gold has not gone nearly as deep as I would like to see happen. It still might, but we also can see another zigzag being formed or just completing.  My degree level still may need adjusting, but for now we have to see if another “C” leg develops soon. 

Any price level drop below $1253 will instantly trash this bullish wave count. Gold topped out nicely at the $1293 price level, which was a long term bearish trend line top. For gold to show us what it is capable of doing, then the $1293 resistance trend line, will get sliced into two pieces 

$1375 is the next big price level that gold will have to cross which is only about $95 away. All this may be very slow to happen in the summer months, but the fall could provide all the excitement in gold that we can wish for. 

Some fundamental analysts are calling for hyper inflation, but this is wishful thinking as interest rates would rise dramatically to compensate for this. Hyper inflation would also crush the US dollar where my bearish forecasts below 70 would just be a mere drop in the bucket. There are many countries in the world that are or have suffered hyper-inflation and if gold rose to $5000 or $10,000, you would have nobody to sell it to!  Some past hyper-inflation periods only lasted 5 years from start to finish so if the US dollar gets destroyed you may only get Canadian dollars for it.

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