WaveTrack International

Elliott Wave Financial Price Forecasting

An Update of Precious Metals & the ‘Inflation-Pop’

by m.tamosauskas| November 17, 2014 | No Comments

01_tutpat_Shock-Pop-Drop

Even though bearish precious metal forecasts have dominated the investment scene over the last several months, it was very noticeable that social media interest ‘spiked’ when gold recently broke below the 18-month horizontal lows of 1180.00+/- during the late-October sell-off. The Bank of Japan (BOJ) had just announced the expansion of its quantitative easing programme and whilst this may have inflationary implications down the road, was seen in the short-term as a bearish indication for precious metals basis a weakening global economy that needs propping up.

It was therefore no surprise when media headlines followed the break below 1180.00+/- that the latest batch of price downgrades from investment banks were announced. CNBC came through with a report that gold was now heading lower towards $800.00 oz. whilst Bank of America Merrill Lynch announced ‘Buy the US$ Dollar, Sell Gold’ adding ‘…downside targets are…potentially below (1180.00)  to 1087.00 and even 956.00”.

When analysts continue downgrading price levels on a consistent basis over several months, well, that raises a red-warning flag, but when downside forecasts are suddenly lowered by large percentages, especially following a psychological breakdown as gold did below 1180.00+/-, then it signals the approach of a major low. This is of course, a ‘contrarian’ bullish signal – it won’t necessarily time the actual low for precious metals but it does provide a useful indication of pessimistic extremes, and when that is applied to the Elliott Wave count for Precious Metals, it makes a powerful statement of imminent change.

The next stage of WaveTrack International’s ‘Inflation-Pop’ scenario is set to kick-in soon – interestingly, Legal & General Investment Management (LGIM) which manages £463bn in assets recently reported that its economic model has ‘flipped’ form predicting ‘deflation’ to signalling ‘inflation’ in every major region, including the Eurozone – now that’s amazing!

In our latest monthly edition of the institutional Elliott Wave Navigator report, the medium and long-term forecasts for Gold, Silver and Platinum are updated together with updates for the GDX, XAU indices, and several major gold stocks that include Newmont Mining, GoldCorp. etc. and Silver Wheaton. This follows on from our bearish forecasts earlier this year, but the report highlights the approach to specific downside targets for gold, silver and the ETF’s. The consequences are huge as we enter this next stage, and it will also have knock-on effects for the US$ Dollar too.

This latest report is the most detailed written and reported on since our video updates were published earlier this year, and its details not only the current downside targets for Gold, Silver, Platinum and all the indices and equities, but the upside target projections for the next few years. Form this analysis, it is possible to determine what is going to outperform, and underperform during this next and final upsurge of the ‘Inflation-Pop’.

The Elliott Wave Navigator report is only available to our institutional subscribers, but this up-coming event is so important, we want to share it with you too. Just subscribe to the EW-Compass report (1x month = US$32.00, 3x months = $96.00) and get the PRECIOUS METALS report absolutely FREE as part of your subscription. Its monetary value can’t be figured, but to anyone interested in gaining a view of what the precious metals landscape looks like during the next few years, well, that would mean adding a few ‘000’s to a figure.

We hope to see you join us as our EW-Compass membership continues to grow – our community of Elliott Wave enthusiasts has a common goal and a common voice – now’s the time to express it.

(Become an EW-Compass report subscriber and see how these patterns continues to develop and what’s coming up in the larger time-series).

 

Category: Agnico Eagle Mines, Copper, GDX, Gold, Silver
Tags: > > > >

Comments

About WTI

WaveTrack International is a financial price forecasting company dedicated to the Elliott Wave principle and work of the R.N. Elliott. Clients include Investment Banks, Pension Funds, Total/Absolute-Return/Hedge Funds, Sovereign Wealth Funds, Corporate and Market-Making/Trading institutions and informed individuals -- & just about anyone who is affected by directional price change.

Subscribe to our feed

WTI Links

Search