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Weldon - Here is the Key Level for a Massive Gold Breakout

With gold trading near the $1,750 level, today King World News interviewed Greg Weldon, Head of Weldon Financial to ask him about the recent central banks actions and what level gold needs to pierce to have a major breakout. Weldon has a global following of some of the wealthiest investors in the world including individuals, institutions and financial firms. Before we get to his key breakout level on gold, this is what he had to say about the coordinated actions of the various central banks, “It’s a massive war right now. The big battlefield is right in front of us. It’s a massive war between central banks, which are now dangling that monetary carrot in front of the markets, that they are going to do whatever it takes to make sure that reflation is renewed as the dominant macro influence on markets.”

Greg Weldon continues:

“The markets are suggesting, at least in the short-term, that they are willing to believe central banks are going to be willing to do enough to stave off a renewed round of deflation. And I tell you markets were on the cusp of pursuing that path (deflation) just a week ago, markets were perched on the precipice.

So the timing of all of this is perfectly laid out to have saved the markets. I have always said that when peering into the abyss of debt deflation they will choose to reflate, no matter how much it takes. Now the question is, the battlefield is defined by can they do enough to keep the markets believing?...

Continue reading the Greg Weldon interview below...

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When asked about the central bank actions and the impact on the gold market, Weldon stated, “Looking at gold above $1,804, in US dollar terms, would be a breakout. You have a nice technical pattern here. You’ve had a retracement and you’ve come back and held some of the key moving averages.

If you can break above $1,804 you are violating a triangle congestive pattern that’s developed in gold. Gold is not above $1,804, so I would like to see it get there and then there are plenty of reasons to be bullish.”

When asked how significant a break above the $1,804 level for gold will be, Weldon replied, “Technically it’s quite significant given the recent pattern. It would suggest the next round of monetary push is going to be significant enough to circumvent a debt deflation, that they will print enough money and expand balance sheets to the degree that they have to, to debase currencies against the price of gold.

Should you get above there ($1,804) and gold is up against the euro and yen, given the most recent technical action, this would suggest a continuation of the secular bull market, meaning new price highs.”

The KWN interview with Greg Weldon will be available shortly and you can listen to it by CLICKING HERE.

To subscribe to Weldon Financial research CLICK HERE.

Eric King

KingWorldNews.com

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