Back in May WaveTrack International’s Peter Goodburn predicted a sharp downturn in gold prices by the end of Q3 this year, which would then be followed by a massive reversal in prices which would take all the major precious metals up to new highs probably by early 2016. This article provides an update to his May projections.
The above introductory comments are edited excerpts from an article* by Lawrence Williams (mineweb.com) entitled Elliott Wave analyst sees big gold and silver price surge ahead.
Williams goes on to say in further edited excerpts:
Goodburn was predicting that the bottom in gold would be reached in August but the escalation of the situation in Ukraine may have had an influence on keeping prices higher than Goodburn’s earlier projections would have otherwise suggested. Nevertheless, talking to Mineweb today, he notes in an update to his May projections that, while the general pattern of his May analysis has indeed come about with the short term downturn in prices much as predicted, he now thinks there could be another price downturn before the big upwards price move kicks in…
He notes that with commodity prices extending declines during the last couple of months, copper and crude oil included, gold and silver are now approaching some major lows. As always, the timing of an exact reversal is important, and the latest report also takes a look at fine-tuning the final stages of declines that began from the 2011 highs.
The next phase of the ‘Inflation-Pop’ scenario, as he describes it, is only a few months away from ignition stating in the report that,
- “Once the current declines have ended, sometime into year-end 2014, perhaps extending into early 2015, the ‘regression’ phase that has pulled this sector and commodity markets lower during the last several years and more will be over;
- A new bull market uptrend is then expected to begin the next and final stage of the ‘Inflation-Pop’ lasting the next few years with ultimate upside targets to record highs…
- The concept of an ‘inflation-pop’, or asset-price-pop event, seems not just a probability anymore, but verging on the lines of inevitability….
- At some stage, during the next few months, a quantum change of sentiment will occur. The commodity pendulum that has swung into extremes of bearishness over the last few years, to the point where investment banks have summarily closed their commodity trading businesses over the last few months, proves the momentum is waning. It is about to reach its inflexion point before beginning a swing in the opposite direction…., but one thing is for sure, this next and final stage of the ‘inflation-pop’ will be quite visible to all once it gets underway…
- It is difficult not to get overwhelmed in the excitement of what is to come.”
Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.
*http://www.mineweb.com/mineweb/content/en/mineweb-gold-analysis?oid=259958&sn=Detail (Moneyweb Holdings Limited, 1997 – 2014.)
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