Just When You Thought It Was Safe | The Gold Forecast

Just When You Thought It Was Safe

September 10, 2014 - 5:12pm

 by Gary Wagner

Gary S. Wagner - Executive Producer

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Gold Forecast: Proper Action

This morning we sent out a formal trade alert recommending that traders initiate short positions (sell gold), if they have not already done so. The trade alert read as follows:

Although I have been speaking of lower prices ahead in gold, I have not put out a formal SELL signal in gold. This is it. If you are not already short gold you should sell it at market (1249.54 current price)

Buy stop above 1261.

Gold Market Forecast

We saw a continuation of the dramatic selloff in the precious metals continue today.

Even with the US dollar and equities below recent highs in their respective markets, both managed to close higher on the day. We believe that this is a trend that could continue. Although we're not looking for stocks or the dollar to move straight up, we see no reason to believe that their trends have eroded.

Thus, we believe that we will see continued pressure in gold as long as the equities markets and US dollar remain firm. Once gold broke below support at 1261 our current real target became 1230. That number is based upon a 76% retracement from the $200 rally which began at the end of 2013 beginning of 2014.

We did not issue a sell recommendation for silver - today's video will explain our rationale behind that decision.

Sentiment Indicator: