Basically starting from the Mid-April, all the top elite’s banks are drumming up loud noises to ‘sell gold’. GS, JPM, HSBC (banks who rule the world) and MSM’s talking heads all spread the rumour that gold was heading toward $900 or less and that the bull market in gold was toast. The influence from this kind of news served the perpetrators well
Yesterday, I saw another fresh note via market watch about analysts led by commodities-research chief Michael Haigh ( of Societe Generale) pencilled in a drop to $1,200 an ounce by Dec. 31, down from today closing price of $1,365.They write: We believe that the dramatic gold sell-off in April, combined with the prospect of the Fed starting to taper its QE programme before year-end, has resulted in a paradigm shift in many investors’ attitude towards gold, which is likely to result in continued large-scale gold ETF selling this year and next. ETF gold selling has averaged about 100 tonnes per month since the April sell-off. We expect continued ETF selling to exceed higher demand for jewellery/bars and coins. Therefore, we have revised lower our Q4 13 gold forecast to $1,200/oz. That implies another 13.2% drop in gold prices.
How do I view their call?
1. Do not pay too much attention to their call. They are the money suckers who use their big influential power to move the markets to their advantage. But, I don’t necessarily disagree with their dirty call because sometimes, they can get what they want. After all, gold contracts (in volume) can be manipulated quite easily.
2. We simply can’t trust their call (with ulterior motive). We must do our own technical and cyclical timing analysis to determine ‘when is the best time to buy’ so that we don’t miss the low entry level.
3.The dirty vultures (crooked banks), who had shorted gold, made some fortune as the metals were smacked with a historic crash in April but at the same time, they are waiting to load up on cheap gold and silver when many duped investors are forced to liquidate. When they finish loading up at the bargain price, the will drum up the beat again but this time is to ‘buy gold’.
4. Technically, gold technical picture is weak in term of price but what about Timing. Are we near to buying time? Not many people know that “time is more important than price”. As legendary trader/investor who said: Only when time is up, price will reverse. Now, let’s we take a preliminary look (without much detailed analysis) at the gold price in a simple technical sense:
a. Truly, Gold is in a longer-term downward-sloping channel (which produce a series of lower highs and lower lows), and that presents some serious technical concerns in regards to the declining support.
b. Bearish wedge pattern of gold is forming. 1359 is the critical support and 1398 resistance got to be taken out in order for gold to exert some upward pressure. Where to from here?
5. Is the timing picture for gold tells a different story? I have prepared an extensive Gold and Dow’s timing cycle report based on 3 in-depth types of analyses which gives a clear forecast of Gold and Dow direction for the next 6 months. This 20 pages special ‘Gold and Dow’s cycle timing report’ is reserved for my members who currently are happy with my latest call on the Dow/SP500 (cycle low) entry level last Friday. They are now sitting on a very good profit zone.
Before I pen off this short article, I would like to show you two timing charts here about why ‘timing analysis’ is one of the key tool (identifying the turning points) to help you making a consistent profits along the way. Not only that, it is able to help you to exit the market before the major correction or crash to avoid devastating loses like the time in 2008.