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Gold’s Next Big Move: The Jackson Hole Dilemma?
EWI’s Metals Specialty Service uses Elliott wave analysis to steer a clear course through gold’s near-term gyrations

By Nico Isaac
Wed, 29 Aug 2012 16:30:00 ET
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Gold prices gained over $80 per ounce between August 15 and August 27. And, according to the mainstream financial experts, the next big fundamental catalyst in gold’s pathway is the upcoming August 31-September 1 monetary policy meeting in Jackson Hole, Wyoming.

But, while the usual experts have the WHAT nailed down, they’re not so clear about the HOW said meeting will alter the course of gold.

Here the following news items from August 29 set the very conflicted scene:
 
·         The Jackson Hole meeting is bearish for gold: “Gold Prices Fall… as investors speculate that Fed Chairman Ben Bernanke” will maintain his “room to act” language. “Our view is that Bernanke will disappoint markets and that is definitely a concern for gold.” (CNBC)
 
·         The Jackson Hole meeting is bullish for gold: “Gold Holds Near 4 ½ Month High… on hopes that US Federal Reserve Chairman Ben Bernanke may announce further stimulus measures at a speech later this week in Jackson Hole, Wyoming.” (Reuters)
 
·         The Jackson Hole meeting is irrelevant to gold: “Gold Prices Going Higher Regardless of Jackson Hole Outcome. Americans have become increasingly worried about… the sluggish US economy. Bad news is good news for gold again.” (Money Morning)
 
See, fundamental analysis of financial markets is based on external events, such as the Jackson Hole meeting. The problem is, public perception of those events changes more often than the daily crushes of a teenage girl.
 
Now, while no method of market forecasting is 100% "fool-proof," Elliott wave analysis stands apart by examining the main trend-changing force internal to all financial markets; namely, social mood -- which also unfolds in objective wave patterns on a market's price chart. Each pattern adheres to specific rules and guidelines governing wave length, depth, and often duration.
So, let’s recap. Gold prices rallied over $80 per ounce between August 15 and August 27.
EWI’s Metals Specialty Service’s Daily analysis of gold on August 15 identified an Elliott wave contracting triangle in gold’s price chart. For newbie’s, contracting triangles are 5-wave, sideways-moving patterns labeled A through E. Once complete, they are followed by a powerful thrust in the opposite direction.
Metals Specialty Service foresaw gold’s next move befitting this post triangle thrust and wrote:
“This is likely where we will ‘begin to eliminate or at least shift odds on the 3 viable counts… the bullish contracting triangle would see its wave ‘e’ bottom here and then a thrust.”
Soon after, Metals Specialty Service’s Intraday gold analysis on August 16 at 11:48 AM confirmed that key price action had occurred:
“Bottom line is that with gold rallying above highlighted resistence, I favor a post triangle thrust to AT LEAST 1650.”
Now, the latest Metals Specialty Service reviews the current Elliott wave pattern and reveals where prices may go in the days and weeks ahead via this labeled chart below:  
 
Join the rapidly growing team of Metals Specialty Service subscribers today.

Be Ready When Gold Flashes "Opportunity" 

When gold prices move decisively, it can often be explosive. And while it may come without warning to some, Elliott wave analysis can help you see signs of an imminent opportunity before they turn into tomorrow's news headlines.

EWI's Metals Specialty Service alerted subscribers to a developing triangle pattern in gold which helped them prepare for the upward "thrust" that has since followed. Timely updates like these can make all the difference when evaluating your position.

Elliott wave analysis is not a crystal ball, but it can help to turn endless possibilities into manageable probabilities that you can put to use in your trading strategy.

Be ready for NEW opportunities in gold, silver, copper and other major metals. Get timely forecasts and intensive Elliott wave analysis right now to help you make smarter trading decisions.

Learn more about EWI's Metals Specialty Service >>

 

 

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