Wednesday, July 23, 2014

Technician Who Called Gold Bust Predicts $700 gold

We aren't looking for that big a drop ($875) but we're betting sooner rather than later.
From CNBC, July 15, 2014:
When Yoni Jacobs' book "Gold Bubble: Profiting from Gold's Impending Collapse" was published in April 2012, gold was trading around $1,650 per ounce. Now gold is below $1,300. But Jacobs, the chief investment strategist at Chart Prophet Capital, doesn't think the gold plunge is over just yet.
"The long-term target is still $700, which sounded a lot more ridiculous a few years ago" Jacobs said on Tuesday's "Futures Now."

"If you look at the long-term chart, you'll see that we reached $800, around $700 in the late '70s, in the '80s bubble of gold. In the 2008 recession, gold bottomed right around $680, which is around $700. So there's a clearly defined trend line there," he said.
Gold suffered two tough days on Monday and Tuesday, as the metal lost $40 over the course of two sessions.

Still, Jacobs doesn't think it will be a straight path down.

"Obviously, nothing falls dramatically that fast. It has to take some pauses on the way down," he said.
Currently, he sees support levels at $1,000 and $1,200, and notes that gold could bounce higher from there. But over the long-term, the picture is clear....MORE
The August contract is trading at $1307.3, up a buck.