$GOLD - $756.55?
If you want to better understand where the gold price is headed you could do worse than study geometry, the circle, spirals and Martin Armstrong.
Prices move up and down spirals like people moving up or down a staircase
Image Via Pixabay
In 2011, the gold price reached a high around 1920.00. To have continued higher it would have needed a yearly close at or above 1968.13. So 2011 was the year gold came tantalizingly close to breaking 2000.00 on its way to the next target above 3000.00, but it was not meant to be.
For years there has been great speculation, sometimes crossing into hype, about gold rising to 10,000.00 or even up to 50,000.00.
From a cyclical and geometric perspective such numbers are pure nonsense. Ten thousand people could write ten articles per day for the next ten years with all of the justifications (or reasons if you will) why gold ought to rise into the tens of thousands of dollars, but it simply isn't going to happen.
In fact, there is the danger (perhaps opportunity for some) that gold slips under 1000.00 per ounce. However, the continued trend of gold yearly closes at or below 1220.24 is setting up gold for a move to the next cyclically important level of 756.55.
For the past three years gold has closed at the following levels:
2015 - 1060.00
2014 - 1199.25
2013 - 1204.50
Obviously, gold closing yearly below 1220.24 doesn't mean it has to fall below 1000.00, 900.00, 800.00 or to 756.55. But it does open the door to a dramatic drop in the gold price.
If you look at the yearly gold closes in the link above, you'll see that from 2006 and earlier, gold never closed a year above 700.00. So, while those ten thousand people can write articles about why the gold price must rise, the current elevated prices are a recent development.
The recent failure of gold to move past the 1318.75 level was also a sign that gravity is still tugging the gold price, preventing it from rising.
Each year that passes from now until 2029/2030 sees a resistance level that steadily moves from the current level of 1681.44 down to 1080.32. Don't misunderstand, just because that resistance level stands at 1681.44 doesn't mean gold will push anywhere near it, but it doesn't mean it can't either.
So, there is a steady, downward resistance being applied to the gold price which has nothing to do with manipulation, but is simply cyclical and measurable by applying simple geometry and math.
Keep in mind the importance of gold closing 2016 at or above 1220.24. Remember too that gold doesn't get to 2000.00 or 3000.00 without passing through 1968.13. When the yearly close levels aren't met, then the price can reverse and head back down the spiral staircase. And no, it's nature not bankers that ultimately moves the price. Anyone who says otherwise, over the long-term, either doesn't understand or is not being honest.
Chart Analysis uses a combination of technical analysis and cycles to provide insight into the future direction of precious metals, currencies, stock indices and more.