Gold – $1400 By Canada Day

by JDH on May 26, 2018

Since you pay me the big bucks to read this silly little blog, I’ll make it worth your while by giving you a prediction: before the end of June, gold will hit $1,400.

That may seem like a bold prediction, given that gold closed on Friday at $1,303.70.

Or, that may seem like a not-that-bold prediction, given that gold has touched $1,358 six times so far this year, and once last year (the green horizontal line in the chart), so another 42 bucks on top of that is not that “out there”.

Of course $1,358 has served as significant resistance, and you’ve got to go back to 2012 to see something above $1,400 for more than a few days, so $1,400 by July would be quite something.

Why is that my prediction?

As you can see in the chart, gold’s intermediate corrections are getting shorter and shorter, and the lows are getting higher and higher (the horizontal red lines).  Strength in the US dollar has kept the “safe money” out of gold, but any US dollar weakness should push gold over $1,400 for the first time in many years.

So, $1,400 it is.

I’ve held all of my gold stocks, and I’m speculating with NUGT – Direxion Daily Gold Miners Bull 3x Shares NYSE + BATS on weaknesses, because if gold pops, I want to be levered to the upside.

Let’s see what happens.


And yes, I am still short on Tesla.  That’s a train wreck.  By some puts, a few months out.

Have fun.

See you next week.