Gold Trader: “We’ve Got All The Conditions Necessary To Trigger A Bubble Phase In Gold”
By Tekoa Da Silva
Wednesday, 24 July 2013
During a week of sharply rebounding precious metals and mining share prices, Gary Savage, technical gold trader and publisher of the Smart Money Tracker, was kind enough to share his comments. Gary’s trading calls have outperformed most of the world’s hedge funds during 2011 and 2012.
Here are his interview comments with Bull Market Thinking’s Tekoa Da Silva:
Tekoa Da Silva: Gary on Monday the 22nd, gold exploded higher to about $1334 an ounce. In your commentaries you’ve been speaking about $1300 being an important psychological level. What are your thoughts?
Gary Savage: Sure, Tekoa. I told everybody in my weekend report that early this week I was expecting gold to gap through the intermediate trend line which was right about at $1300, maybe a dollar or two above $1300, and that’s what it did Monday morning.
In my opinion, that has confirmed that June 28th was indeed the yearly cycle low and we’ve got an intermediate degree rally ahead of us which should last probably until early November, maybe mid-November, and the reason I am expecting that is because I believe the dollar has begun moving down into an intermediate bottom and the timing band for that dollar bottom comes in right around the first, second or third week of November, somewhere in that time zone.
So if gold maintains its inverse relationship with the dollar, then gold should generally rally as the dollar drops into that intermediate low.