Tags: Gold | bugs | fly | 4 | 500

Gold Bugs Fly High, With One Predicting Move to $4,500

By    |   Thursday, 23 August 2012 01:24 PM

Gold’s jump to a four-month high has turned many market participants into big-time bulls. It recently traded at $1,674.

MarketWatch columnist Peter Brimelow has put together a compendium of the enthusiastic commentary coming from the market.

The most extreme forecast appears in an essay by gold technician Alf Fields. He actually wrote the piece Aug. 1, but gold analyst/trader Jim Sinclair has republished it on JSMineset.com, as he thinks it applies now.

Editor's Note: I Wish I Were Wrong — Economist Laments Being Right. See Interview.

“The bottom line is that we now have a really strong probability that the correction which started at $1,913 on Aug. 23, 2011, has been completed both in terms of Elliott waves and also in terms of time elapsed,” Fields wrote.

“If this is correct, the gold price should soon be expressing itself in violent upside action as it moves into the third of third wave, which is still targeted to reach $4,500.”

Brimelow also cites the Aden Forecast’s GCRU service. “And they’re off,” GCRU wrote. “The [gold] markets have taken off. The train has left the station, and another leg up in the bull market is getting started.”

Indications that the Federal Reserve will ease policy again soon have excited many players in the market.

“Gold is exploding today as inflation concerns are back,” Adam Klopfenstein, a market strategist at Archer Financial Services, tells Bloomberg. “A combination of rising commodity prices and the chances of more easing in the U.S. is stoking inflation worries.”

Editor's Note: I Wish I Were Wrong — Economist Laments Being Right. See Interview.

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Thursday, 23 August 2012 01:24 PM
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