Gold Correction Imminent

Gold is in the process of beginning a multi month-correction. Nonetheless, we expect one more run up in price - and are targeting the high $1300 area as a top. Then we expect a correction to last through the first quarter of 2017 when a significant bottom will occur.

We are also expecting other markets to correct over the coming months, including global stock markets and peripheral currencies as the Dollar once again becomes the go to currency.

Our main thesis going into 2017 is that regardless of the actions of politicians and central banks to micro manage their economies, they are merely hostages to the markets which expand and contract like any natural organism.

The gold bull that began at the start of the century never ended. It merely entered a healthy consolidation after a decade of year-on-year rises…thus requiring a consolidation. We are now nearing the end. And after this correction, we will begin a strong rise back towards the old high of 2011.

We remain long-term gold bulls. Consequently, our longer-term forecast patterns give us the confidence to not worry about any decline that may come first – as it would represent a significant buying opportunity and a broader base for an even bigger price rise in the future.

We expect the correction to end at about $1160 in February/March. Moreover, we think the timing will be more important than the price. Subsequently, it will give the market a chance to move from over bullish outlook to fall back towards pessimism.  Needless to say, it will clear out a lot of speculation, which should create the necessary conditions for a considerable rise thereafter.

Taking patterns in nature that repeat over different time frames like fractals as the basis for the forecast methodology, our forecast patterns can last for months and years. We create a most probable long-term fractal pattern - and then continually test it and model it over multiple time frames to ensure the pattern remains a probable event.

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You can follow our short-term forecasts on our website at http://www.kenticehurst.com