Gold: 5 February 2014, Wednesday, 10.35pm Singapore Time
To reiterate what I had said before like a broken old record singing the same tunes over and over and over again... until my targets are hit:
Gold was determined to be at a fair price at $1300 by the smart monies, the best of the best as well as the market movers. There was a demand and supply mechanism at work which determined $1300 to be fair value.
When a fair price is reached, bullish and bearish market forces neutralise each other, and the price can go both ways; there is a 90% likelihood of a rebound from below $1300 since:
1. $1300 itself is a fair value in the market mechanism and Gold deliberately went just below $1300, an under-value and refused to fall any further. Technical Rebound has to occur when a commodity goes under-value and has no energy to fall anymore.
2. In addition, almost everyone in the financial market is bearish of gold. Since most people have to lose money, Gold has no way down for the short term but to go up from fair value of $1300 to wipe out the correct shorts out there in the financial market. In essence: take out the shorts out there nastily with a nicely executed big up-wave rebound.
3. Gold needs to go over-value again, by appreciating 19%-20% from $1300.
An appreciation of 19-20% would make the price rise as near to a bull market definition as possible yet not a bull market. This would throw confusion as to whether Gold is in bull market or bear market. This over-valued price would be around $1500-$1550 after calculation and can extend to a maximum limit of around $1750-$1800.
This will then set an over-valued condition by the time it happens. US Dollar movements will ensure this state. At the same time, a new lower fair price would be set simultaneously by the market mechanism when Gold hits $1550, and this would be a price that is way below $1250, possibly at $950-$1000.
4. The market mechanism will move Gold prices to the above points. So far, Donovan Norfolk Ang maintains a 100% track record on Gold at all the precise turning points.Obey the market for the free market mechanism and self-regulating behaviour of the markets guided by Adam Smith's Invisible Hand is as efficient as it can be in the Theory of Efficient Market Economics.
Additional Note:
Additional Note:
1. Hot monies worldwide are fleeing bank stocks worldwide at the moment:
Banks are perceived as risk now and Gold is perceived as the safer assets currently.
2. USD Index (US Dollar) will sell down and suffer selling pressure as hot monies leave US Markets and US Treasury Bonds Markets in the 1Q-1H of of 2014.
All Previous Gold Analyses (100% Track Record in Accuracy and Precision):
http://donovan-ang.blogspot.sg/search/label/Gold
Related (Implications on Forex):
http://donovan-ang.blogspot.sg/2014/02/market-forecast-update-6-february-2014.html
Related (Implications on Forex):
http://donovan-ang.blogspot.sg/2014/02/market-forecast-update-6-february-2014.html
Mark the targets down in your memory.
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Donovan Norfolk Ang
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Hi Don, your blog gives good macro view of the smart money movements. I like to understand how your macro calls on gold against alcohol consumerable companies who are listed in SGX.
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