Gold Price Forecast for the Final Bottom in Gold

As we wrote previously, in our daily gold trading newsletter, we usually focus on either short- or medium-term price swings, but in this essay we’ll do something quite different. We are going to analyze the gold market from the long-term perspective and we are going to focus on what’s important from the long-term point of view.

The most general and most important observation regarding gold’s performance in the last several years is that the yellow metal has been declining – it is not a one time even most gold investors had hoped it to be, but a new medium-term trend – and a quite powerful one. Major trends tend to end in a profound manner – during tops everyone wants to buy and when the bottom is formed everyone panics.

So far the rallies (even significant ones, when viewed from the short-term perspective) have just been corrective upswings that were followed by further disappointments. We haven’t seen a rally that would be strong enough to end the medium-term decline and we haven’t seen a bottom that would be accompanied by real panic among gold investors. (more)