It's The Economy, Everybody

January 24, 2014 - 4:28pm

 by Gary Wagner

Gary S. Wagner - Executive Producer

P.S. Want to get my Gold Forecast that's returned 1600% since 2010 for free?  Click Here

Members section is now available for free, because 14 days has past since its publication.

Gold Forecast: Proper Action

A major breakout occurred yesterday in gold.  Today we have follow through.

 This morning we issued a buy signal in gold. Traders who took the call should be long @ 1268.

 Place protective stop below 1245.

No positions in silver.

Gold Market Forecast

What a difference a week makes. On a technical basis, this week has provided clarity as we witnessed a major upside surge in gold prices yesterday and follow through today. With equities markets under tremendous pressure we saw gold prices effectively rebound and surge to a three-month high.

This week's gain in gold prices is significant, but what is more significant is the fact that for the first time since gold began its dramatic selloff from 1800 per ounce it has broken above and traded through its long-standing resistance line. The resistance line we identified, which can be seen in many of the charts in the gallery, clearly show a close above the resistance line. This dramatic move could be signaling a significant rise in gold considering the last time we saw gold trade at 1181 and move higher, prices culminated at 1435.

Although it is much too early to create a model with gold prices rising that dramatically, in terms of a historical perspective it is the only other time we have witnessed gold prices bounce off these lows in the last three years. Today's video will outline our thought process behind our buy recommendation this morning and detail upcoming resistance levels the market couldn't counter if gold prices continue on their upward climb next week.

Sentiment Indicator: