A few months ago I contributed an article to the ‘tent’ in which I took issue with several analysts who were suggesting that with Elliott Wave analysis they could project the future of the current gold bull market.

The problem with their approach is that ‘EW analysis is at best applicable to a slow moving market’.   Even then it is more effective in hindsight!

EW analysts keep warning you about the ‘scary #4 down wave’ that lies ahead.

We are currently seeing the most powerful gold bull market in the past 100 years!                                        I was a trader/analyst during the 1976 – 1980 gold bull market, and the current  bull is much more powerful.

The current gold bull market compares to events in France in the 1790s and Germany in the 1920s and Zimbabwe in 2008!

Gold Bull #1 during the last 100 years ran from 1970 to 1980, price rose from $100 to $850, a multiple of 8.5.  Bull run #2 went from 2002 to 2012, price rose from $250 to $1,900, a multiple of 7.5.  The current bull market started in 2015 at $1,000.00.  Using the average of the last 2 bulls, we come up with a target at $8,000.00.   Due to the current government deficits in nations all over the world, the $8,000.00 target will turn out to be but a stepping stone!

Next up is GDX the gold miners ETF which just a few days ago produced a rally, at the fastest pace in its history!

Here is a chart from our weekend report that shows the GDX gold miners ETF rising inside the blue channel, ending the week with its best four day performance, in many years, – probably ever!  The rally that started at the blue arrow called for a target at the green arrow.  In the event, price ‘jumped the creek’ and closed at the brown arrow.  The green box shows that volume is supporting the rally. Instead sliding back into the blue channel, price appears ready to continue on its new track on Monday, leaving a ‘gap’ behind.

 

Next up is the daily gold chart as at 4 pm Friday.

Here is the daily gold chart from our report of Friday April 11th.  Once again we see price ‘jumping the creek’ at the green arrow (which was the target for the rise from the blue arrow).  The supporting indicators are positive and the green vertical bar shows Moving Averages are in positive alignment and rising.    The EW people will be warning you to expect a big drop based on their ‘voodoo’ analysis.   Disregard them and enjoy this ‘once in a lifetime gold bull market’.

r the gold price.   Without hesitation Jim answered $25,000.00!

My third and final chart for this article shows demand for gold on the part of the Central Banks of the World.  The sources for this chart are at the bottom.

 

Please do your own research and due diligence.  Peter Degraaf is not responsible for your trading decisions.  He produces two reports every week at his acclaimed website, peterdegraaf.com (the number of visits to the website is in excess of 500,000).   The reports mentioned above are available  free of charge, at the website.