Tags: Paulenoff | gold | record | high

Strategist Paulenoff: Charts Indicate Gold Headed for Record High

By Dan Weil   |   Wednesday, 22 Aug 2012 01:00 PM

The rally that has taken gold to a three-month high still has legs, says Mike Paulenoff, founder of trading advice service MPTrader.com.

“My cycle work in gold indicates we're due for a few months of strong upside action,” he writes in his column on MarketWatch.com.

When gold hit a low of $1,522.48 an ounce Dec. 29, Paulenoff’s charts pointed to a 5.5-month cycle, with gold touching its nadir between June 11 and 15.

Editor's Note: See the Disturbing Charts: 50% Unemployment, 90% Stock Market Crash, 100% Inflation

The low ended up coming May 16, at $1,526.98. And it held another test June 28 at $1,547.87

“Every bout of subsequent weakness has held above the May-June lows, suggesting that indeed, a 5.5-month cycle low has been established, presumably ahead of two months of bullish price action.” Paulenoff writes.

And that points a two-month rally, he says. After breaking decisively through the key 10-week resistance level of $1,625 Tuesday, gold has good chance to break through resistance at $1,672, and then $1,700, Paulenoff maintains.

“Barring a bull trap, my intermediate-term pattern and cycle work will be arguing strongly that spot gold has entered a new bull phase that should revisit the September 2011 high at $1921.05.”

Other experts cite fundamental factors that could push gold higher.

“The reason we’re positive on gold is that major currencies around the world lack credibility,” Gary Dugan, chief investment officer for Asia and the Middle East at Royal Bank of Scotland’s Coutts & Co. private-banking division, tells Bloomberg.

He sees the metal rising as emerging-market central banks and investors buy it to hedge against weakening currencies.

Editor's Note: See the Disturbing Charts: 50% Unemployment, 90% Stock Market Crash, 100% Inflation

© 2017 Newsmax Finance. All rights reserved.

1Like our page

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved