The following brief was adapted from recent analysis published Nov. 11, 2014, in the Financial Forecast Service, authored by EWI's top U.S. analysts, Steve Hochberg, Peter Kendall and Robert Prechter. An expanded, in-depth, 15-page version of the report is available free to subscribers. Learn more and get access now, or continue reading the free version below.
Excerpted from the Elliott Wave Theorist/Financial Forecast Interim Report
November 11, 2014
A Bullish Juncture as Gold Bugs Finally Bug Out
On September 2, 2011, The Elliott Wave Financial Forecast cited a just-released Gallup poll that showed Americans considered gold to be the best long-term investment, beating out real estate, stocks/mutual funds, savings accounts/CDs and bonds. We forecast the following: «it is surely a sign of exhaustion and perhaps the strongest sign of a gold top.» The issue added, «Gold's wave structure is consistent with a terminating rise.» Prices peaked two trading days later at $1921.50 on September 6, 2011. Despite record monetary stimulus in QE3 and QE4, years of political crises in the Mideast and Russia's invasion and annexation of part of its neighbor Ukraine, EWT and EWFF have maintained a bearish stance toward gold. Now, for the first time in three years, the wave structure can be labeled a complete five waves down from September 2011, which indicates a significant countertrend gold rally at hand.