Wednesday, April 28, 2010

Gold Report - All Aboard the Gold Train

Gold Report - All Aboard the Gold Train

Since early 2009, we've written about the super-bullish long-term cup and handle pattern in gold. It dates back to 1980 and has a logarithmic target of about $2,100. We noted that previous cup and handle patterns in gold all reached their logarithmic target. We expect that this move to $2,100 will be the recognition move that awakens the masses to the gold bull market and the reality of severe inflation in the near future.

Speaking of the near future, the relative strength of gold in the face of a strong USD (or weak euro) is one big hint that this recognition move is around the corner. We've noted this before and it is important to explain to new readers. Gold priced in foreign currencies has been leading gold in USD terms. It is true for the entire bull market and is quite evident in just the past few years.

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