Gold - Weekly chart from NFTRH 134

Au Weekly, updated

This is from the NFTRH chart list and was part of NFTRH134 (predating the NFTRH144 specimen shown previously by 10 weeks).  I really do get into looking at these markets from as many angles as I can think of.

It is interesting to go back and see the previous targets which, at the time seemed no sure thing.  Yet the chart said, be steady my son.  Ever since Armageddon '08, a series of 'Cups' aimed the gold price higher.  Each was an opportunity to claim some insurance for those who had resisted (I don't reco what individuals should do; this is a personal matter when it comes to insurance.  But for our purposes, the old saying 'buy right and sit tight' was applicable since 2000-2004).  Now, would-be owners are chasing a system coming apart at the seams.

Meanwhile, back on May 1st when the chart was produced and the below written, the herds slept soundly, with their beloved stocks at new recovery highs and all was well.  Gold, in its upward march - it ain't no bubble, not yet - just ground forward very quietly.

What I found most compelling was the extended MACD 'platform':

"The 1569 target off of the most recent ‘Cup’ is now in the books. So what does that mean? It means that a target was hit and nothing more.

In fact, with the objectives of the two most recent and smaller Cups filled, it is now appropriate to reintroduce an old target from the massive Cup that was formed during the ‘fear and misperceptions’ extravaganza that was Armageddon ’08. The next target is a Sinclairian 1642. We have had this (+ or – a few points depending on how I measured it at a given time) on radar for at least the last year.

MACD tells a story of why I think it could come sooner, rather than later. This all important momentum indicator has not been on an impetuous drive higher as it has been into previous significant corrections from over bought levels. Look at that beautiful lateral activity highlighted in yellow. It looks more like a platform than an over bought peak.

Weekly RSI however, is to over bought levels that have terminated rallies and yet the ADX (black line, lower panel) indicates a strong uptrend that has periodically corrected to clear the unhealthy holders, before resuming the trend. The black line most recently has dipped to meet the rising green (+DI), which indicates the trend is healthy and may not yet be over done.

Inflation and deflation are in play and there is only one asset in my view that is right for the ongoing struggle between these conditions, which should lead to the ultimate destruction of the current debt-fueled paper system.

Specifically, last week’s GDP report and Retail Sales revisions showed signs that the economy is beginning to decelerate, even as the mainstream media spin this as the result of geopolitical angst, natural (and unnatural) disasters and bad weather. NFTRH continues to fully expect economic problems as a result of one thing that matters most, destructive inflationary policy.

To review, the boom-bust play goes like this: Deflationary impulse (a need to correct the ongoing excesses) is met with heroic monetary policy, as clerks in high places meet the dreaded deflation with debt creation and money printing. Do they actually believe this can work, or are they just myopic little administrators that only see or care about the next election cycle? A real and organic economy cannot be created from exponentially increasing debt.

Gold, in my view, is the only real monetary protection for the process, which involves deflation impulses and ongoing inflationary structure. This kind of makes the idea of drawing charts like the one above a silly concept since the assigned price of gold is not the main issue here. It’s just that I do so enjoy doing these charts and plotting targets, etc."

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