It has been almost three months since we published “Gold May Have Found the Bottom” on November 16th, 2015. When gold was knocking on the door of the 1000-dollar mark and the fundamental picture seemed to be showing no end in sight for the bearish trend, we decided to take the other way and post a highly bullish forecast. We did it, because the weekly chart of the precious metal allowed us to recognize some Elliott Wave patterns, suggesting we should prepare for a “swift and sharp” reversal. The chart in question is given below.
The patterns, which warned us about the upcoming strong recovery, are the triangle in wave “b” of Y and the ending diagonal in wave “c” of Y. Even without looking at the rest of the decline since 2011, these two patterns told us everything we needed to know – that the bulls are ready to surprise everyone.
Which they did. Gold officially bottomed at $1046 and started rising, just as the Elliott Wave Principle predicted. On February 12th, 2016, the price of the yellow metal exceeded $1263. In the meantime, an article by Bloomberg said that “even the combined brains of the biggest gold dealers, refiners and investment bankers failed to imagine just how much the precious metal would soar this year”. In our opinion, that is because gold dealers, refiners and investment bankers do not use the Elliott Wave principle. We do. And we are more than satisfied.
What to expect from now on? Is gold going to continue even higher or the resistance near $1260 would turn out to be too strong for the bulls to breach? Prepare yourself for whatever is coming. Order your on demand Elliott Wave analysis now or pre-order the one due out next Monday at our Premium Forecasts section. Stay ahead of the news in any market with the Elliott Wave principle.