Friday, December 31, 2010

Gold Forecast 2011; It starts with a New Year's Rally : Gary Wagner

Here below are some interesting forecast for GOLD in 2011 written by Gary Wagner at Kitco.

A Decade for Gold

This decade will come to be known as the “Gold Rush” of the twenty first century, well at least the beginning of it! Gold compared to almost all other investments, outperformed brilliantly this decade. From a low of 255 per ounce to 1431, gold returned over 550 % in the past ten years. It took six years for gold to double from 250 to 500. It took only three years for gold to double from 500 to 1000. As we close out this decade we are at 1400. We have also been doubling the angle of accent. We are at a 45 degree climb as we bring in 2011. Can gold double again in 18 months? I do not think it is possible, but it would not be an impossible feat. Chart 1 (below) a monthly gold chart shows how the bullish trend has greatly accelerated. Gold has become the new “Currency of Choice”.

Chart 1

A New Year’s Rally
What could be a better way to end this decade than with a New Year rally. It is my belief that this current rally which began this week is the start of a new bullish run which will take gold to new highs. By March of 2011 gold could be trading as high as 1473, my current target for this wave. Chart 2 below, is a daily candle chart with my Elliot Wave count and most recent projections.

If gold continues to rise in value at this present speed we could see gold trade as high as 1600 dollars per ounce by the first half of 2011. In the last 5 months alone, we have seen a twenty three percent rise from 1150 to 1431. What will gold prices look like in 2020? It is not hard to imagine 2000 or even 3000 dollar gold by then. Only time will tell, but I think the gold rush has just begun. I think this party will last well into the next decade

Gary S. Wagner has been a technical market analyst for twenty five years. He is the executive producer of the daily video newsletter “The Gold Forecast”. He is the Co-author of “Trading Applications of Japanese Candlestick Charting”. A frequent writer for Technical Analysis of Stocks & Commodities magazine, he also Co-developed “The Candlestick Forecaster” software application for market forecasting.

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