Gold $3,000: The Ascent Begins
Is gold’s long-awaited surge to $3000 an ounce finally underway? Are all the traffic lights green?
Throughout the Western world (and China too), aging populations need a lot of medical care, and the only government and central bank “solution” is…
More debt and more money printing.
Supply chain horror and Coronavirus are creating stagflation in the world’s growth engine; China.
A potential war cycle in 2021-2025, stagflation, destructive demographics, surging jewelry demand in India, money printing, and debt…
These key fundamental drivers are all becoming a perfect storm for a monstrous rally in gold.
What about the charts? Are there green lights for gold there too?
The weekly gold chart.
Monday’s trading created a key crossover buy signal on my powerful 5,15 moving average series.
The $1840 price zone is important, and a breakout above there could serve as the launchpad for a surge to $2089.
What I believe is the most important chart in the history of the gold market.
A massive inverse H&S bull continuation pattern is in play and gold appears to be beginning its rally from the right shoulder to its $3000 target zone.
I call this the “wiener money” chart. It covers 50 years of failed price action by the dollar against gold.
An ominous bear flag is in play now, and that’s in sync with all the other green lights for gold and the blood-red lights for fiat.
Horrifically, the world’s richest man and electric car maestro was driven out of “Greenifornia” (California) by a state government that refuses to reign in its spending, taxation, and debt.
Unlike most US lawmakers, Musk is rumored to live very modestly in a $50,000 “pre-fab” home. He’s also a crypto enthusiast.
Some investors like gold. Others may prefer crypto. Both may have a solid role to play in hedging against the rising tide of stagflation.
I cover most of the cutting-edge crypto action in one of my newsletters.
The exciting GOAU ETF chart.
Chart patterns can fail, but the better a pattern looks, and the more it’s in sync with fundamentals, the more likely its price target is going to be hit.
I expect some wild action in the $1840 zone for gold over the next few days, with the bulls likely getting the victory.
The $22 area for GOAU is just the target of the daily chart inverse H&S pattern. At gold $2089, GOAU could be north of $30.
A $3000 gold price would turn most of the world’s miners into the biggest free cash flow cows in the history of markets.
Is a price of $100 for GOAU attainable with $3000 gold, an environment of rampant stagflation, and a slumping stock market? I think so, and it may not be long until more money managers agree!