• 485 days Will The ECB Continue To Hike Rates?
  • 485 days Forbes: Aramco Remains Largest Company In The Middle East
  • 487 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 887 days Could Crypto Overtake Traditional Investment?
  • 892 days Americans Still Quitting Jobs At Record Pace
  • 894 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 897 days Is The Dollar Too Strong?
  • 897 days Big Tech Disappoints Investors on Earnings Calls
  • 898 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 900 days China Is Quietly Trying To Distance Itself From Russia
  • 900 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 904 days Crypto Investors Won Big In 2021
  • 904 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 905 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 907 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 908 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 911 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 912 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 912 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 914 days Are NFTs About To Take Over Gaming?
How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

  1. Home
  2. Markets
  3. Other

Will Gold Drop Below $1000 Soon?

First of all I would like to say that last week was our best trading profit week ever since we began trading NUGT and DUST on August 19th of this year. Using e-wave, cycles, technical indicators and astrology, we were able to catch the bottom on GDX Wednesday around $13, expecting a move to cover the gap near $14.08 by Thursday or Friday (it tagged $14.06 on Thursday and on Friday $14.07). We then shorted the miners via DUST when GDX went above $14 a share. GDX ended Friday at $13.40.

The answer to the gold question is a resounding YES! All indications point to another leg lower for gold into around December 2nd to just below $1000 an ounce (targeting around $975 +/-). The correlation between the precious metals and the stock market is important at this juncture, as everything looks to be lining up for a commodity lead drop (think especially the oil sector) that will affect more economic sectors. This could lead to a rise in volatility ahead as we see a rotation out of dollar sensitive sectors and into others that will benefit more from a stronger dollar.

I believe by reading the 'astro tea leaves', a rise in interest rates is coming back to the foreground again (think FED special closed door meeting Monday), and this points to a higher dollar and deflation concerns. The balancing act the FED is playing (between inflation and deflation) can last only so long before we either have a deflationary economic collapse or an inflationary boom that will result in even a bigger collapse.

I my opinion, if we see increased volatility in the next 2 months like we saw in December '14 to early February '15, the inevitable bigger drop (than the late May to August 24 drop) next year will be postponed by 3-6 months, but is inevitable in any case. If we see a lack of greater volatility going forward, with a failing Dec 15th top and a shallow retracement going into early December, the piper will likely be paid sooner rather than later. Also, if the expected drop next comes later rather than sooner next year, it will likely be larger than if sooner. The time frame I'm speaking about runs from about mid spring to mid fall of 2016.

Overall, I don't expect anything huge yet (like what happened in 2007-09) until around 2017-2020. I believe that time frame will see a much larger bear market than what occurred in 2007-09, rivaling the 1929-32 stock market bear (my bear market target is 443 on the S&P 500 and around 3650 on the Dow Industrials based on Elliott Wave Theory).

Gold's 8 year cycle low is due in mid/late 2016. We could see gold go as low as the 2008 bottom near $667. A stronger dollar will likely be the cause. The US based multinational corporations will suffer from a stronger dollar, imploding sales and should keep a lid on overall stock market growth. In a nutshell, I don't see much higher prices in the stock market than where are right now. However, I do believe we will see new highs next year, just not much higher.

It is my opinion that the "buy and hold" retail investor will again suffer through another choppy, toppy market like we had last year.

Below are charts of the SPX, GDX and GLD with commentaries:

S&P500 Daily Chart
Larger Image

S&P500 Macro Daily Chart
Larger Image

GDX Daily Chart
Larger Image

Gold Trust Weekly Chart
Larger Image

My C2 verified BluStar3XGold trading signal is +109.9% as of August 19, 2015. I correctly called for bear rally strength later in the week last week for GDX and a bullish week in the stock market. My original November 25 call for a top in the stock market has been shortened to November 20th.

 

Brad Gudgeon, editor and author of the BluStar Market Timer, is a market veteran of over 30 years. The subscription website is www.blustarmarkettimer.info

BluStar Market Timer offers auto-trading for those who don't have the time or inclination to trade their own accounts.

 

Back to homepage

Leave a comment

Leave a comment