What happened to Gold ?

IMG Auteur
 
 
Published : March 02nd, 2012
563 words - Reading time : 1 - 2 minutes
( 4 votes, 3.8/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : Market Analysis

 

 

 

 





What happened to gold on 29 February 2012? The precious metal dropped from $1792 to a low of $1686 in one day!


How does this shape up with our Elliott Wave expectations?


The answer is that the market is tracking well in line with expectations. Before dealing with the current move, it is an idea to go over what our expectations are. What we know so far is that Intermediate Wave III started at $1523 and that we have a target of $4,500 for the end of Wave III. We also know that Wave III will consist of five regular waves which we will label 1 2 3 4 and 5. Regular waves 2 and 4 will be the anticipated 13% downward corrections described in my speech to the Sydney Gold Symposium. Link at: www.jsmineset.com/2011/11/14/keynote-speech-at-sydney-gold-symposium-14-15-november-2011-by-alf-field/


Regular wave 1 will consist of 5 minor waves which we label (i) (ii) (iii) (iv) and (v). Waves (ii) and (iv) will be downward corrective waves one degree small than the regular waves. Thus they should be about half the magnitude of the 13% of the regular sized declines, say about 6%.


Minor wave (i) should consist of five minuette waves which we can label i ii iii iv and v. Again the minuette waves ii and iv will be downward corrective waves about half the size of the minor wave corrections of 6%. Thus the minuette corrections should be approximately 3%.


The following is the analysis of minor wave (i) showing the five minute waves:




The two corrective waves are approximately 3% as expected. Waves i and iii are equal at 9% while wave v is almost exactly 61.8% of waves i and iii. This wave count is as perfect as one could wish for. Thus we can conclude that minor wave (i) was completed at $1792.


As described above, minor wave (ii) should be a correction of approximately 6%, but could range from 5% to 8%. A decline of 6% from the $1792 peak gives a target of $1685. In after hours trading yesterday gold reached $1686.


The COMEX chart, however, shows a low point of $1696.


It is possible that the entire correction in minor wave (ii) occurred in one day. A rally followed by a further decline to test the $1685 area is a more likely outcome. An 8% decline would bring the $1650 area into play. If gold drops below this level we will have to consider other possibilities.


Once the bottom of minor wave (ii) is in place in a convincing fashion it will be possible to make some more accurate longer term gold price forecasts.


Comments to: ajfield@attglobal.net


Disclosure and Disclaimer Statement: The author advises that he is not a disinterested party in that he has personal investments gold and silver bullion, gold and silver mining shares as well as in base metal and uranium mining companies. The author's objective in writing this article is to interest potential investors in this subject to the point where they are encouraged to conduct their own further diligent research. Neither the information nor the opinions expressed should be construed as a solicitation to buy or sell any stock, currency or commodity. Investors are recommended to obtain the advice of a qualified investment advisor before entering into any transactions. The author has neither been paid nor received any other inducement to write this article.



 

 



<< Previous article
Rate : Average note :3.8 (4 votes)
>> Next article
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
The Black Swan So Ugly No One Will Talk About It
14 JanS W.
A black swan is a highly improbable event. Obviously the author of the article does not understand that.
Fed’s Balance Sheet Reduction Reaches $402 Billion
07 JanRocco
Every time the FED speaks, gold skyrockets. Just buying some gold every time before the FED makes an announcement and then selling for a quick prof...
Gold Price 2019: 5 Analyst Outlooks
09 JanS W.
In reality there is no such thing as a price of gold. That is because those that are swapping their gold for worthless pieces of paper ( transa...
Will Coins and Bars Save Gold?
30 Decstevewonders
The only thing that will save gold in 2019 is the dollar/yen. I am out of all speculative positions going into the long holiday weekend. I will loo...
“Collapse Of Civilisation Is On The Horizon” – Attenborough Warns W...
28 Deckevthorne-1
I was impressed by this article. In further support of Attenborough, who many will dismiss as a naturalist, and therefore unequipped to commen...
Merry Christmas to All
28 DecDoom
Gee, if it wasn't constant robocalls all day long, maybe it'd be worthwhile to answer the phone...
“Collapse Of Civilisation Is On The Horizon” – Attenborough Warns W...
19 DecS W.0
People are more complicated than the climate. Humans adapt to the climate. Except doom and gloomers who like to scare everyone to death about sea l...
“Collapse Of Civilisation Is On The Horizon” – Attenborough Warns W...
11 DecJ.0
The Climate, it's complicated. Look up the 100,000 year problem. Basically, the Earth has been in an Ice Age about 70 - 80 % of the last one m...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS