You might remember I got very excited posting these (and many other global currency) gold charts early in the year. When I saw such enormous, bullish basing/consolidation patterns. pennants, flags and triangles all over the place, it became obvious to me that everything was coming to a conclusion, and that the direction of travel would be up. The breakouts (upwards) began one by one, with very little fanfare and surprisingly few seeming to notice. It was all about gold priced in US Dollars (which was still forming a bullish downward sloping wedge up against the edge of my ‘bowl’ basing pattern). Dollar gold has been a long way behind all these other currencies which have broken to new all time highs.

The next move for Dollar Gold will be to challenge that $1700-$1900 range. Once we get past $1600, I’m going to start looking very carefully at just how long I think it might take to break through. I think it’s possible we can get well past $1600 in the next few weeks BUT, if gold were to trend down for the rest of the year, it would set us up for an incredible run next year, so either way, I have no concerns whatsoever. The fundamental reasons for FIAT depreciation are ‘baked into the cake’. I believe commodity inflation will unfold steadily in the next 12 months, catching many people by surprise apparently. I have no clue why it would be a surprise if you look at the CRB or BCOM charts though. Anyway, enough of my rambling thoughts, here are the charts…

As a footnote, when I say ‘initial target’ what I mean is that this is what I’m thinking is the likely ballpark figure before we turn down into the cyclical low in late 2023 or 2024 (remembering that we may start the drop into that low a year or so before we actually reach the bottom). So we might expect that target to be reached by 2022. If we rise faster, I will re-assess. After the 2024 low, we will surpass that high, on the way to a peak in the late 2020’s. That’s my personal opinion anyway.

EDIT – Charts for gold in Indian Rupee and Chinese Yuan added below. It seemed rude not to, as they are such populous, gold loving nations…