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Gold shot up, reaching a nearly
one year high today, and rapidly approaching its record high area.
The ongoing current A rise that
started last November is the strongest in this bull market and the strongest
since 1999. Since this is an abnormally strong 'A' rise in an abnormal world
recession, if gold reaches a new record high above $1004, gold will most
likely be embarking on the start of a great bull market rise.
Gold could then jump to the
$1200 level as its next target. Keep an eye on $910 as gold's 'A' rise is
very strong above it (see Chart 1).
GOLD: An eight year
phenomenon
Further backing this up is
gold’s ongoing bull market, which turns eight years old this month. The
eight year mark has been a consistent low time for gold going back to the
late 1960s when gold began trading in the free market.
Chart 2 shows this best. Note
the pattern. It has repeated four times since 1969 and the fifth one is
possibly happening now. Important lows vary from 7 years to 8 ½ years
following the previous low, with the average being eight years. This
recurring pattern tells us that the low could’ve been last
November’s low, three months shy of eight years, or it could still be
upcoming. The long side would be a low this Summer.
The point is that gold’s
near or at an important low time. This means we want to buy more gold during
weakness this year because gold is set to reach a record high, and the $2000
level would eventually be a likely target, near the top of the mega upchannel
(see Chart 2).
In other words, whether it was
last November’s low or a low upcoming this year, the gold price is
getting closer to the start of an even greater bull market rise. We
should, therefore, have all of our gold positions completely bought well
before year end.
Mary Anne and Pamela Adend
Editors,
The Aden Forecast
Aden Forecast.com
Mary Anne and Pamela
Aden are internationally known analysts and editors of The Aden Forecast, a
market newsletter providing specific forecasts on gold, gold shares and the
other major markets.
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