Once every year gold and stocks form a major yearly cycle low while other commodities form a major cycle bottom every 2 1/2 to 3 years. Occasionally all three of these major cycles hit at the same time….That’s what’s happening right now and it should lead to a powerful rally over the next 2 years, culminating in 2014 when the dollar forms its next 3 year cycle low.
So says Toby Connor (www.goldscents.blogspot.ca) in edited excerpts from his original article*.
Connor goes on to say, in part:
The CRB Index and US Dollar Index
The implications are that once the CRB has completed this major cycle bottom we should see generally higher prices over the next year and a half to two years, presumably topping during a major currency crisis as the dollar drops into its next three year cycle low in the fall of 2014.
I think the recent rally in gold is signaling that gold has put in its yearly cycle bottom. Since gold did not break below the December low of $1523 I think we can assume that this is a B-wave bottom and should be followed by the consolidation phase of a new C-wave that should break out to new highs either later in the fall or next spring. [Read:
- Goldrunner: Fractal Gold Analysis Says Gold On Way to $3,500 Mid-year!
- Leeb: Gold Going to $3,000 Before the End of 2012!
- David Nichols: Expect to See $2,750 – $3,000 Gold By June 2013 – Here’s Why]
The next two years should generate an even more impressive advance than the 2009-2011 rally, possibly even generating the bubble phase of the bull market in late 2014 or early 2015 as the dollar crisis reaches a crescendo. [Connor is not alone in his assessment that the peak will be in that timeframe.