According to a recent PBS News Hour report, NASA scientists have uncovered trace elements of gold on the surface of the moon.
The discovery seems all too fitting, considering the fact that gold prices have soared beyond this planetary orbit to boldly go where no yellow metal has gone before. To wit: On April 5, gold shot up more than $20 per ounce to surpass its previous record AND land at a new, all-time high.
According to "fundamental" analysis experts, political instability was the one main factor that lit the rocket launcher beneath gold prices:
“Gold shook off early weakness to trade in record territory, supported by conflict in the Middle East and North Africa... People want some protection.”
This kind of logic goes over just fine -- as long as you were born yesterday. Because anyone who’s been following gold prices over the past few weeks knows there has NOT been a consistent relationship between Mideast tensions and gold. Mainstream market observers have said so themselves, many times, as evident from these earlier headlines:
- “Gold Dips To Two-Week Low even as ongoing conflict in Libya and the Middle East.”
- “Gold Declines On Global Cues”
- “Gold is struggling to gain traction as it’s caught between huge uncertainties including geopolitical tensions in the MENA region (Middle East and North Africa).”
The fact is, there are always countless external variables surrounding a financial market. It’s impossible to know which one of these “x” factors the market will react to, how it might react, or if it reacts at all.
Elliott wave analysis doesn't try to interpret the ever-changing external variables. Instead, it examines the market’s internal Elliott wave pattern AND various other technical indicators. That's what prompted EWI's Metals Specialty Service editor Mike Drakulich to go on high bullish alert on April 4 -- one day before gold’s surge to new highs:
“Right now it looks like a fourth wave contracting triangle could be close to completing. An upside thrust should follow. Bottom line is that I favor Gold going to a new all time high above 1448.”
You can see how the expected post-triangle rally unfolded:
Elliott wave forecasts don't always work out like this. But they do give you an alternative to all the guesswork about the potential impact of "the fundamentals." Find out what Elliott waves suggest for gold prices next -- personalize your Metals Specialty Service package today.