Scope For Gold To Extend Much Higher Than $1200 Over Time, Goldman Says

Tyler Durden's picture

Gold has reached, and so far held, notable resistance around $1200. However, as Goldman notes, there’s scope to extend much higher over time.

The current area includes the 100-wma and the trend across the highs since March ’14 (wedge resistance). It’s formed an exhaustive looking candlestick pattern and oscillators seems to be turning. Basically, it seems a good place to start a corrective pullback. The 100-wma in particular was an important pivot in determining the start of the late-’12 decline.

From a wave count perspective, the market is likely in the initial stages of a counter-trend ABC correction which could eventually retrace ~38.2% of the 5-waves from ’11 to 1,381. From a pure techs perspective, breaking from a declining wedge would initiate a medium-term target back at the start of the pattern ~1,392.

Bottom line, although 1,200-1,202 might hold in the near-term, there’s scope to extend much higher over time.

Source: Goldman Sachs

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Slomotrainwreck's picture

Somebody please tell Mr. Gartner to stay out of precious metals.

Captain Debtcrash's picture
Captain Debtcrash (not verified) Slomotrainwreck Feb 11, 2016 11:12 AM

Anyone who says you should not hold gold in your portfolio is either ignorant and not paying attention, or lying.  Goldman is usually the latter, but is throwing in a kernel of truth as a CYA. 

StackShinyStuff's picture

Alert - Goldman prop desk now short gold.  Trade accordingly.

giovanni_f's picture

Same thought. Intraday reversal today or tomorrow.

Another (less likely) possibility: A last-resort distress call to the BIS. Just like ISIS calling Erdogan when overrun by the Syrian Tiger Forces.

PR Guy's picture



On a long enough timeline, even a polished turd is going to cost over $1200 the way the markets are currently going.

Grandad Grumps's picture

Anyone who holds blindly to any single conviction just does not know history.

Did you know that during the Venetian banking empire, the Guelph Black Nobility had such financial power that they were able to change the British standard from gold to silver and the Chinese standard from silver to gold.

Imagine how much control they were able to exert as part of ... and after these changes, since they essentially controlled the markets for both.

It is not prudent to assume too much.

Kirk2NCC1701's picture

Not so fast GS.. Define "Long Term"

Bernoulli's picture

This post was too much for TPTB.

They shut down the whole website...

Worst 20 minutes of my life...

Dr. Engali's picture

This is what the collapse will look like. Dead silence at Zero Hedge. Better get some backup backup backup servers Tyler.

Bernoulli's picture

Or is there some kind of "meeting point" with comment function in case of such an emergency? would still be free for example? I could create a "blog" for the next time?

Dr. Engali's picture

A meeting point is a good idea.

TeamDepends's picture

Bar at the end of the pier. Wear your Nixon mask.

Dr. Engali's picture

I'll be the one dressed like a wookie.

lakecity55's picture

Watch out for Bath House and Reggie!

A Nanny Moose's picture

We doesn't like ur kind 'round there here parts.

lakecity55's picture

Everyone meet at the local fairgrounds.

. . . _ _ _ . . .'s picture

zhdown is now down...

plan 'C'?

Bunghole's picture

Can we start a Go Fund Me account for a new server.

FFS, what are the Tylers doing with all the ad revenues.

Buying gold?

giovanni_f's picture

" would still be free for example? I could create a "blog" for the next time?"

That would be unfair. It took the DHS so much effort and at least two (hardly concealed) ZH-unavailabilites to install their man-in-the-middle servers.

ali-ali-al-qomfri's picture

may I also offer up a salute,

Fight Club Salutation.

that we may know each other in a crowd,

It goes like this;

Place your right fist,

 into your left eye socket,

with pointer finger knuckle resting against the bridge of your nose.

The more subtle salute is to have a black eye and/or or a fat lip,

self inflicted.

No words be exchanged, until a brother is recognized.

lakecity55's picture

Better, just get a numerical-only ip and email us the number.

Hulk's picture

and some 12 gauge ethernet cable...

PontifexMaximus's picture

Thougt I was the only one in UAE having trouble

deKevelioc's picture

You still accepting dollars over there for oil?  Try the euro, and you'll have more than server problems.

deKevelioc's picture

Dup, and can't get rid of it.

Winston Churchill's picture

Tyler , maybe a backup server in Iceland as Sakar was forced to do ?

deKevelioc's picture

Zerohedge server screwed up again?  Can't they find a 13-year-old kid to preent server attacks?

TradingIsLifeBrah's picture
TradingIsLifeBrah (not verified) Feb 11, 2016 11:09 AM

The new morning smackdown doesn't occur in Gold anymore but is rather received straight to the ZH site.  Fed is changing its mandate...

Bangin7GramRocks's picture

You know this is really depressing. I came to ZeroHedge to watch the crash unfold 5 years ago. I'm still waiting and now I know that when it does happen, I won't be able to see it. The Hedge now crashes and burns whenever there is a big down day in the "markets".

Tinky's picture

Tru dat.

Disappointing, even given the price of admission.

GRDguy's picture

I got hit the same way. Figured it was Denial of Service from some agency. It'd be nice if ZeroHedge lets us know what really happened, if they can.

lakecity55's picture

That's what happens when you become the popular girl...

thinkmoretalkless's picture

Raise the ad rates and upgrade capacity. Lights out when TSHTF. BO has the kill switch so if you wake up in the dark get heavy and open up that can of Dinty Moore

katchum's picture

I thought they said gold was going to 700?

deKevelioc's picture

They lie; don't you know?

Rubicon's picture

They actually said "007 is going after Goldfinger"

Dyslexia rules ko.

Anopheles's picture

It will, just not this year.  

Dg4884's picture

Damn those Windows 98 machines!

Bunghole's picture

At least Win 98 didnt spy on you

Bastiat's picture

They are in panic mode.  Easier to shut down zh than shut down PMs and prop equities.  Total spectrum info control is the goal.

Bank_sters's picture

Paper gold.   Goldman always talks about the paper gold racket.  Go ahead and "invest in that muppets!"   


Orémus's picture

and for real gold to jump paper gold need to crash

so no good news

Kaiser Sousa's picture

tuesday night after the attacks that day on the only 2 forms of real money i ordered more of both before yellen stepped in front of congress and lied her ass off...

if only id stop accululating physical Gold and Silver and spend my time studying to beocme a "superior trader" im sure me and mine would be much better off....

Jonas Parker's picture

I figured Kim Jong Wazizname had ordered Tyler shot...

TradingIsLifeBrah's picture
TradingIsLifeBrah (not verified) Jonas Parker Feb 11, 2016 11:21 AM

Yellen sat back this morning and said, "Who's the deer in headlights now..."