On the heels of continued pressure in the metals markets, today one analyst out of Europe asks the question: Could the price of gold really spike 70 percent in the next 90 days? This is the type of thing that the big banks follow closely, as well as big money and savvy professionals. David P. out of Europe sent us the three key charts along with his commentary.
David P. out of Europe: "Because of the recent strength in the price of gold, the MACD has finally turned to a buy signal in the weekly chart for first time since the bear market started back in 2011. See the long-term chart with MACD below:
The enlarged chart below reveals the historic MACD cross into a major buy signal.
Continue reading the David P. piece below…
As you can see in the first chart, when the MACD flashed a buy signal back in 1982, after a similar, precipitous decline, gold surged from $300/oz to over $500/oz in a very short (3 month) time frame — a staggering 70 percent rise. This was a remarkable move to say the least. If a similar move unfolded today, it would take gold to $2,162 in just a few months.
The MACD-indicator is now significantly lower than it was in 1982. Perhaps, if history repeats, we will see something similar. This is based on historical patterns and it should be considered as a possible scenario for the price of gold.
A Top In The US Dollar Index?
The MACD has now reached a level not seen since the massive U.S. dollar rally in 2008, as global markets began to crash. Each time it has reached these levels, the dollar has subsequently headed significantly lower. In my opinion, there’s quite high probability the US dollar will top very soon. That means oil and other commodities will start to rise from current levels."
***ALSO JUST RELEASED: Historic Events To Create Massive Dislocations As Gold And Silver Markets Rebel CLICK HERE.
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