Gold Close To A Major Breakout Which Will Send It To $1,900+
September 28, 2012
Today Jeffrey Saut told King World News, “… gold is still in a secular bull market.” Saut, who is Chief Investment Strategist for $360 billion Raymond James, also said, “Right now gold is testing the upper side of the trading range we’ve been in, and if it breaks out, I think it travels back up to the old highs, a little bit above $1900 an ounce.”
Here is what Saut had this to say: “The stock market is following the election year pattern, with a correlation of about 98%. A typical election year pattern since 1936 called for a peak in the first week of April, a pull back into the first of June, a stair step higher into the first week of September, and then a pull back or correction into about middle to late October.”
Jeffrey Saut continues:
“That should be followed by another rally. Again, the correlation so far has been at 98%. We got very overbought on a short-term basis on the QE to eternity announcement. I don’t think we will see any more of a pull back than maybe the 1,400 to 1,420 area on the S&P.
Having said that, you could have the Straits of Hormuz shut down and crude oil could go to $200 a barrel….