Hasten slowly and ye shall soon arrive.
Milarepa
Many experts speak of patterns and if one wants, one can find a plethora of patterns each one of them portraying a different possible outcome. If you look deep enough, you could find some pattern that worked once, but ceases to be of any use in the future. There is no guarantee any pattern will work going forward simply because free markets no longer exist. The Fed made sure of this when they started forever QE. This pattern could lead to a big move in Gold 2015 or any other pattern for that matter could; the key word is could, and not will. Hence, the focus of this article is not on possible patterns; instead the focus is on what is going on in the Gold market right now.
We were very bullish on gold starting from 2002, and our bullishness continued until the beginning of 2011. In 2011, we started to voice concern as the Gold camp was chanting “Kumbaya my love," and almost every Tom, Dick and Harry in the Gold market were all busy issuing higher targets. Towards the middle of 2011, there were many signs that all was not well. Key technical indicators were issuing negative divergence signals; the dollar was generating strong signals that a bottom was close at hand, and as we already stated the Gold camp was simply too ecstatic for our liking. We advised our clients to close the bulk of their bullion positions and to embrace the dollar as it was getting ready to break out; the rest, as they say, is history.
From 2011 to the present day, gold experts have continued to proclaim that a bottom is close at hand; on each occasion, their dreams failed to materialize. Divorced from reality they continued to grip onto the illusion that just because the Fed was printing more money, Gold was destined to soar to new highs. If this was true, then Gold should already be trading north of $3,500. Since its inception, its sole function, albeit indirectly while boldly proclaiming to do other good deeds was to destroy the dollar. The only difference between yesteryear and today is that the Fed has decided to turbo charge the process. What one needs to understand is that Gold is very much like any other market out there. This means that like…
