The Gold Market May Stun Participants With A Move To $6,300
August 16, 2012
Today Tom Fitzpatrick told King World News, “We see no reason why this gold trend cannot perform as well as the last bull market in gold between 1970 and 1980.” Fitzpatrick also stated that a replication of that move, “… will take gold to $6,300.”
Here is what top Citi analyst Fitzpatrick had to say, along with some powerful charts: “The longer gold consolidates, the more we believe it sets the platform up like 2006/2007 for the move higher. Certainly is we start to get a move up through $1,640 to $1,650, it looks to us like the upside move is finally starting, particularly if we can push through that$1,790 level.
When the move kicks in, we think it will be a very quick move to the topside…
When we look at the move in 2006/2007, if we follow that trajectory it should take gold up towards $2,400.
But we see no reason why this gold trend cannot perform as well as the last bull market in gold between 1970 and 1980. If you replicated that move exactly, it will take gold to $6,300.”
From Tom Fitzpatrick’s latest report:
“Gold still remains above the supports in the $1,520 area which the market has tested three times over the past year. The parallel of the trend across the highs also comes in here (currently at $1,532). The first resistance level to watch is $1,665 which is the trend line down from the highs and a rally through there would amount to at least a short term bullish break (see chart below).
Important resistance above there is at $1,790-$1,802 which marks the double (or triple) bottom neckline and a breach of that opens the way for new trend highs (see chart below). The price action here reminds us of what was seen in 2006 after Gold corrected down from $730 to $542 (a more aggressive correction then in percentage terms than the one seen since last year’s high). The market spent a long time consolidating but ultimately rallied to new trend highs in the second half of 2007 (as the credit and banking crisis worsened).