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Fractal Analysis: Huge dollar Devaluation will Drive Gold Much Higher

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Fractal Analysis: Huge dollar Devaluation will Drive Gold Much Higher

The gold bull is still intact but tempered by U.S. Fed spin. The parabolic printing of Dollars leads to a parabolic devaluation of the Dollar and parabolic Gold.
 

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Silver: “You ain’t seen nothing, yet” – Fractal Analysis 

Author: Goldrunner
Posted: Friday , 07 Sep 2012
Illinois -

The Fractal Gold chart work is a direct comparison of Gold, today, to the late 70′s Gold Parabola.  Thus, “timing” is taken directly from the late 70′s cycle, with price targets created from a combination of the late 70′s Gold price and different technical analysis techniques.  We developed a price target back in 2006/ 2007 for Gold to reach the $10,000 to $12,000 range during this Gold Bull.  Anything above that range would mean that the “Stagflation” comparison to the late 70′s was exceeded and “Hyper-inflation” would become a real possibility.

During the early stages of the Gold Bull we were able to show Gold’s advance versus the late 70′s on a single long-term chart since similar chart resistance points were evident.  This gave us the timing for what we coined in 2007, the projected “Deflation Scare waterfall decline into the 4th quarter of 2008.”  Below, is a sample chart from 09-29-07.

After Gold re-tested the “old 1980 top” in the 4th quarter of 2008, the move to new historic highs left no horizontal resistance on the chart to help guide the way.  Thus, in late 2010/ early 2011, we used the time and price relationships from the late 70′s to project Gold’s price advance into the middle of 2011 to $1860- in April adjusted upward to $1920 via normal technical analysis methods.   That projection was fulfilled late in the middle 3rd of 2011.

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