Gold: A Path to Challenge 1800 by Year End

If this potential chart formation 'works' I will be as surprised as anyone. lol

I do think that gold will eventually challenge its all time high in dollars, but maybe not so quickly.

In order to maintain 'orderly markets' I strongly suspect that there will be determined efforts to limit rallies in gold to around 20-30 dollars or less.

We may see a 100 dollar up day before this reaches an intermediate peak.

The ultimate objective for this leg of the bull is closer to 3000 than to 2000, but let's take this one chart formation at a time.

Let's watch to see how this all unfolds.

A Potential Bullish Chart Formation For Gold

There is a potential bullish chart that could be proven in and activated over the next week or so.

I will be keeping a close eye on it.  If it does activate, we might finally have a chart formation worth pursuing instead of this inexorable decline that has plagued the metals for over a year.

Gold Chart - This Is What I Thought Was Probably Going To Happen Ex Egypt

Just to expose a little more of my process, this chart represents what I had *thought* might probably happen in this gold correction. This is a very oversimplified representation, because I also thought we might be making this low around February 4, but I was too lazy to draw in the extra bars to show that scenario as well.  But you get the idea.

It appears that the troubles in Egypt have given the lotus eaters a bit of a wakeup call, and so it was risk off on Friday. That is not to say the correction in metals and the ramp in stocks could not start up again next week, as this ersatz capitalism has a wonderful tendency for convenient forgetfulness when it suits the plans of the monied interests.

The shame of this market is not the occasional fraudulent element so much as any complicity in this greater degree of deception by regulators, politicians, and the bankers misusing public funds and trust, taking from those whose only desire in life is honest work and raising families, with a little comfort, safety, and happiness.

In other words, markets will always have some criminal element, some minority inclined to fraud. But when this tendency becomes general, and corrupts those designed to protect and advise the public, sooner or later there will be justice.

And with justice delayed, too often the trappings of hell and bad karma come with it. This is what we are starting to see today in far flung places around the world. May God have mercy on us.