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Last week I told you about gold’s long-term prospects: $5,000 at least.
And if you’ve been following my shorter-term forecasts for gold, then you know that they’ve been spot on. I’ve been calling for an extended short-term cycle low — which we got on December 15 at $1,124.30 in the February 2017 futures contract — and then a rally.
That rally is now underway, and this past Friday gold hit as high as $1,207.20.
Here was my previous AI Neural Net forecast for gold, then I’ll show you an update:
You can see the rally through January 12 on this chart. You can also see how the rally should stair-step higher in mid-April before a mild pullback sets in.
How high can gold go by then? Not a whole lot higher. Maybe $1,350 to $1,400.
Now, here’s my latest AI chart for gold: The shape is changing a bit, as it should be, but the overall forecast remains the same: A rally in April before pulling back. Note that this chart is a tad behind the action, since my live forecasts and AI charts are reserved for members of my paying services.
So what’s causing the rally? In gold, and other precious metals? Pick your flavor …
I won’t cover them in detail here, again, that’s for members. But look around the world …
Still nasty politics in the U.S.
The rising tide of my war cycles, which I have warned you about repeatedly, even telling you they were due for another accelerated rise right now. And look, we have …
Trump/Putin still wrangling.
4,000 American troops just sent to Poland, the biggest buildup in Eastern Europe since the Cold War.
Syria, Aleppo, Mosul and more.
High tensions between the U.S. and China over the “One-China policy” and Taiwan. And the South China Sea.
The horrendous humanitarian/refugee crisis in Europe, where men, women and children are dying.
And more.
Is it any surprise there are plenty of fundamentals building to drive precious metals higher? Have they bottomed? It’s too soon to say but I like the action.
What about other markets, for instance equities, the Dow Industrials? The Dow is getting ready to roll over.
You can see it right here, on my latest AI chart for the Dow. It should be rolling over and should head lower into late March before bottoming.
Just a pullback. No crashes. Support at 17,500 to 18,500.
That may seem like a steep decline, even to 18,500, and it is worth getting out if you are heavily invested, or hedging with an inverse ETF.
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But it’s not the disaster many are calling for. Once it bottoms, the capital flight into the U.S. will resume in spades and the Dow will be off to 25,000, then even higher, to at least 32,000.
Stay tuned, very tuned in to my writings and analysis of the gold market. In fact, of all major markets. Plus, as I noted last week, be sure to read my E-wave columns each Monday, Wednesday and Friday afternoon published around 4 p.m. EST. They are short, but very inciteful.
Best wishes,
Larry
P.S. Did you know that economic tidal waves act just like tsunamis? According to the National Geographic, the enormous energy of a tsunami can lift giant boulders, flip vehicles and demolish houses. But from a financial standpoint, the K-Wave will be even worse: Millions could lose their homes. Millions more could see their lifesavings wiped out in an instant. Businesses, large and small, could close their doors. Even the bare necessities of life — food, water, clothing — might become scarce. That’s why it’s so important that you get your free copy of “STOCK MARKET TSUNAMI” right away, click here to download now!
Larry Edelson, one of the world’s foremost experts on gold and precious metals, is the editor of Real Wealth Report and Supercycle Trader.
Larry has called the ups and downs in the gold market time and again. As a result, he is often called upon by the media for his investing views. Larry has been featured on Bloomberg, Reuters and CNBC as well as The New York Times and New York Sun.
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Larry,
I enjoy and trust your.financial opinion. Recently my in-laws died and left gold and silver coins to be divided among 9 children. I told them it would be impossible to divide the coins equally and that I would buy them and they could divide cash equally. I was amazed that none of the children wanted gold and silver. Based upon your opinion , I made a great deal in buying the coins at a discount.
Thanks,
Tom Zentz
“And if you’ve been following my shorter-term forecasts for gold, then you know that they’ve been spot on. I’ve been calling for an extended short-term cycle low — which we got on December 15 at $1,124.30 in the February 2017 futures contract — and then a rally.”
I cannot see a record of this forecast in your previous articles. It doesn’t create the confidence for me to subscribe to your reports.
Hello Larry, I enjoy your articles very much even though I do not totally agree. I believe that there are still some variables that could escalate the price of gold and silver even higher. I mention silver, because when gold moves silver follows it, but normally the silver increases are more dramatic because people can afford to buy it. If President Trump Elect puts the Gold Standard back in effect this will also escalate the price of the two metals, because as you are well aware of people want to own something more tangible th a n a door bill.
I have followed gold and silver since returning from Nam in 68. They have never failed me to this day. Also in light of the World situation today and the fact that the US has found what is thought to be the largest gold deposit thus far are very encouraging to myself to say the least. I have made a tremendous amount of money on gold and silver in the past, and do not think I am wrong now when I say we will see gold at close to ten thousand and silver at 100. I realize everyone has their own opinion, and I pray yours is right for a start, but then will exceed your expectations. Thanks for the good read.
Sincerely,
Leo H Whinery Jr
Nuclear Power Operations Management
Senior Operations Management (Retired)
Larry, love your work, but it’s insightful.
Is your forecast for the market just for the DOW or is it also similar for the S&P and NASDAQ?
Larry, I paid big bucks for gold mining millionaire but my latest chart is the same as this one ( gold ending Jan 6 ). Am I not getting updated?
The actual closing line is lagging on this chart. The AI forecast line seems to be the same.
“inciteful” or maybe “insightful”?
Your work has fascinated me over the many years I have seen it. Hope you’re right this time, too.
To be fair Larry, I have been reading your newsletter, and if you recall, when gold was down at the 1140 area, you said couldn’t be certain that the low was in. I don’t recall you being very emphatic about that being the low, not to mention the 1127 you state above. So, while I do agree picking bottoms is a very difficult things in commodities, please at least be honest about what is and what isn’t real. I know you have been suggesting gold will go to at least $5000 but you have to admit, even you did not know the exact time the gold market would bottom or what that value would be. Hindsight is always 20/20 especially in commodity trading. Rather, if you would mention the technical aspect of the market as well as the fundamental, that would be nice. Then we all might enjoy the success of your advise.
As a loyal member of one of your paid services, I am perplexed that you are not guiding us to take advantage of the current rally; you have not suggested that we add to our very small holdings of miners, one of which we no longer hold as a result of being stopped out.
maybe we’ll finally start to see a positive effect on earnings this year from the reset in oil prices. think of all that oil money that used to go overseas that’s now staying here in america. dirt cheap oil and rock bottom interest rates sure seems bullish to me. what more could you ask for?
stocks go up, gold will go down. when nobody wants gold anymore, i’ll buy it from you.
Whoa. I’m confused. You called the bottom on gold and bragged about it – but then it went lower- and you said it would probably continue to go lower still and that it hadn’t found a bottom – but now that it went up instead, you’re saying the bottom is in on gold – and it should keep stairstepping up until april?
I have been following Larry’s advice for several months now and also have been a subscriber as well. I distinctly remember him telling us repeatedly that gold would bottom on October 5-7 at around 1255 an ounce. He did say that gold could easily fall a lot from there, to below 1000 in fact, and I kept adding to my positions all the way down. The last I knew he was advising us to wait for a while until he called the bottom sometime this winter.
yes, I read that too.
I think he do miss a forecast or 2 is no surprise. No one is perfect.
Hi Larry,
You mention ” live forecasts and AI charts are reserved for members of my paying services. ” I am a Real Wealth subscriber. How do I access these live forecasts and AI charts?
Thanks and best regards,
Nicholas
Is it true that China is broke? And that a currency war and yuan devaluation is at hand, which could tank markets?
“Stay tuned, very tuned in to my writings and analysis of the gold market. In fact, of all major markets. Plus, as I noted last week, be sure to read my E-wave columns each Monday, Wednesday and Friday afternoon published around 4 p.m. EST. They are short, but very inciteful.” Larry Edelson
Larry, you’ll want to change ‘inciteful’ to, full of insight!
Hi Larry, So I annalized your last chart with a micrometer as you don’t place basic values. I make precise measurements relating to time and price.
Based on your last chart you have Gold peaking in July 2017 on the 7th at $1567 . The price your prediction is very easy to figure out even based on the lack of basic charting methods provided. Although your timeline made absolutely no sense, when Mathematically calculated.
So Here’s my question: Now you are calling for three tops of Approximately $1350 to $1400. so what happened to the previous chart analysis at $1567? or do you have a bounce off April 24th 2017 to peak in July?
Thanks
hi larry,
do you still subscribe to your call a week or so ago that by mid february oil would tank hard?
In Jim Rickards’ book The Road to Ruin, he speaks about the limited quantity of gold not being sufficient to deliver on all the gold contracts in the market, and conjectures that after a significant failure to deliver on a contract “gold owners in paper forms will want physical gold all at once. The price will spike … Institutions previously uninterested in gold will suddenly want gold … Gold exchanges will halt trading. Contracts will be terminated and settled in dollars at the last closing price.” Meaning that if I’m still holding an option contract on e.g GLD that has gone up vastly in price, if I don’t sell before trading is halted, I will not get any further gain on the trade. Do you see that as possible?
And what about counterparty risk? All those call option writers who lose BIG on a spike in gold, what happens when they can’t buy back. Do you see that as anything other than a very remote possibility for major brokers like Ameritrade, eTrade, etc.?
I am interested in buying gold, but have idea of sellers you would recommend. Will you recommend some legitimate, trustworthy dealers?
Thank you
UM Larry ;
My charts show gold re-treating below 1200 , as you well know when you invert the peak with the forecasted high – it shows sub 1200 – can you expound
Neural network charts are excellent.
Thanks for the update but what do you thinks about Dent’s $700 price call for gold?
I received information that in India gold has not bee outlawed unless it was purchased with
untaxed money. Please confirm if Is the people of India can no longer own gold?
I would like he names of a couple of sellers of gold that are legitimate (read honest). Do you know ANY? If so, how can I get the names of the companies?
Larry, echo what Tom on 1-19 brings up re “the price of oil crashing to near $30.00 a barrel.
Have passed up MANY great opportunities at terrific trade setups just because of your AI warnings. Out here we cannot afford to miss great trade opportunities.
We are in the last week of January. WHAT is your call on the price of oil NOW? Appears that the prices U have talked of are a “PIPE DREAM”. You have made many good calls but so far this is NOT one of them. BTW I did purchase your Supercycle Trader service and was told there would be many OPTION trades. So far NADA! What gives?
Thx
Jeff
I would like to see an answer to the thought expressed by another one of Weis’s researcher and news letter writer who extold the coming Muslem effect of being able to buy Gold for the first time after March 31st this year.
He also said that this was going to happen at the end of 2016. He was expecting a huge demand driving up prices substantially.
It would be nice if Larry could give his thought on this as he did not seemingly have anything to say on that happening.