Edelson: Gold Will Drop to $1,250 – $1,275 In Early October

Despite all the bullishness about gold and silver and the mining industry, I’ve maintained for quite some time the view that this first leg up will be dramatically retraced with a crash heading into October.

The comments above and below are excerpts from an article by Larry Edelson (moneyandmarkets.com) which has been edited ([ ]) and abridged (…) to provide a faster and easier read.

…Here’s the artificial intelligence chart for gold, showing you gold’s probable path heading into October (silver’s is similar) …

…Look, I am as bullish long-term as anyone is, but no bull market goes straight up.  Strong long-term bull markets stair-step higher, taking one step up — then pulling back 50-65% — then taking another step higher. This is what you want to see. It’s also why I’ve been steadfast and refused to jump on a wave with the majority of bullish gold and silver surfers who are about to be thrown off the wave’s crest and even worse, get smashed amongst the coral or the rocks below.

There is a time to buy, there is a time to sell, and there is a time to be on the sidelines like a tiger stalking its prey. Stalking the precious metals is what I have recommended, and I’m convinced it is the right strategy…Same for the mining sector. It had its first leg up and now it needs to pull back and refresh.

…Keep your eyes on gold and silver. As long as gold is unable to close above $1,363.50 on a Friday closing basis — October futures contract — then gold should follow the path seen in the AI forecast chart above into a low in early October. That low should come in around $1,250 – $1,275.

Assuming that’s the course of action and major support holds, I’ll be screaming from the rooftops to buy gold, silver and select mining companies.

Disclosure: The above article has been edited ([ ]) and abridged (…) by the editorial team at munKNEE.com (Your Key to Making Money!) to provide a fast and easy read.

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