![\"Spot](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-07-22-gold.png?resize=525%2C363&ssl=1\" "\\"Spot")
<\/p>\nGold broke long-term support at $1140\/ounce, offering a medium-term target of $1000*. Peaks at zero on 13-week Twiggs Momentum indicate a strong primary down-trend.<\/p>\n
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* Target calculation: 1200 – ( 1400 – 1200 ) = 1000<\/p>\n
Gold fell from a long-term high around $1800 before encountering strong support at $1200. Breakout below this lengthy, mid-point consolidation suggests that the precious metal is likely to experience another decline of similar magnitude to the first. These patterns are normally symmetrical, which would present an end target of $600 per ounce. That is $1200 – ($1800 – $1200) = $600.<\/p>\n
$600 may seem outlandish, given the strength of recent support, but not when one adjusts the gold price by the consumer price index (CPI). Then it appears that yellow metal still has some way to fall.<\/p>\n
![\"Gold](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-07-22-gold-cpi.png?resize=525%2C296&ssl=1\" "\\"Gold")
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Nothing is certain in this world (except death and taxes) and there are many fundamentals (like central banks) that may intervene. Also, there is a strong support level at the 2008 low of $700 per ounce.<\/p>\n
![\"Spot](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2015\/2015-07-22-gold-2008.png?resize=525%2C363&ssl=1\" "\\"Spot")
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I would attach a 50% probability to gold reaching $700 in the next few years and a bit less, say 30%, to gold reaching $600.<\/p>\n","protected":false},"excerpt":{"rendered":"
Gold broke long-term support at $1140\/ounce, offering a medium-term target of $1000*. Peaks at zero on 13-week Twiggs Momentum indicate a strong primary down-trend. * Target calculation: 1200 – ( 1400 – 1200 ) = 1000 What is the long-term target? Gold fell from a long-term high around $1800 before encountering strong support at $1200. … <\/p>\n