Gold Update!

Today I present an update of my Elliott Wave count on the World Gold Index last presented way back on December 14, 2007 (in the archives). At that time I had gold just finishing wave iv of 3 of (5) of III.

Today’s chart shows that I believe wave 3 completed in early 2008 and the larger wave 5 in March of 2008. This also ended the larger wave III rally from early 2001. Since March of 2008 we have traced out A and B of wave IV. As I believe that the large corrective wave IV has not yet completed I can’t be a gold bull here like so many others.

Short term I think we will retest the recent B-wave high near 1,000 dollars but will fail. Then gold starts dropping over the coming months with a minimum of target of $700! What do you think about that?