Gold has been on a great run and has made a historic rally to a series of all time highs. I called this in a series of articles last year and because of that I’m receiving ba lot of request to call what happens next. Firstly lets look at the chart in a context that makes sense. For that I want to look way back.
I recall in a contrarian dinner just after 2000 calling for gold to hit $1000. This was my contrarian idea and the contrarians at the table thought I was far to contrarian for them. So lets go back there.
So I have set this chart to give Gold some ‘luft,’ optical room to rise. My regular readers will have seen me using period doubling frequently over the years so will be expecting me to call this. That’s $5000 an ounce. However the concern of gold holders is we have hit the topbut for me that is simply another question of are we ate another period doubling way point or is that it. We already see the big initial break suggests $5000 at the next big resting point and this is how the current halt pans out. Yes almost exactly at the same $5000 level.
This voodoo charting is actually an outcome of stochastic processes but I wont bore you with that. Gold is moving because global tension continues to ratchet up and until it stops Gold will continue to rise. It will continue to rise to 2027 because the is when the PLA is 100 years old and must be ready according to Chinese President Xi. Ready for what? Well answers on a postcard to 1600 Pennsylvania Avenue, Washington DC. Gold is for war.