Gold will move $500 Per Ounce Per Major City
by John Galt
November 14, 2012
I may not be able to predict political outcomes but I can smell a major move in precious metals and geopolitical conflict a mile away. At this point in time, it is only logical to observe the situation in the Middle East and the soon to begin ground war in the Gaza Strip and start to extrapolate the potential move in precious metals.
The market has been in a prolonged trading range and support held at $1500 which is amazing considering the attempts to break through and retest the $1260 to $1400 range over the time period and failure each time. Of course that failure was assisted by the Federal Reserve and the D.C. circus providing further indications that monetary inflation is the only solution to America’s problems.
In the chart above are two vigorous moves to the upside to attempt to break out back above the $1900 level. Both instead indicated a minor move in reality and the technical bounce failed as volume faded and the government continued to disappoint with policy manipulation which creates a deflationary or economic collapse scenario. The support that has been built though is now over one year long and elongated which indicates the next move in gold prices will be so extreme and shocking that panic buying, not panic selling, will be the rule not the exception. After prolonged base building, such as this past year, gold traditionally doubles, the problem this time is that it could do it in a matter of weeks thanks to a major international conflict possibly in the offing.