by Jordan Roy-Byrne, CMT
The Daily Gold
At the start of 2016, renowned fund manager and bond king Jeff Gundlach predicted Gold would surge to $1400/oz. That was quite the call considering Gold was still in a bear market. He reiterated his target a few days ago in a webcast. Gold closed the week below $1260/oz after reaching as high as $1287/oz following the ECB decision. Corrections in both Gold and gold stocks have been limited to swift declines lasting no more than two days. While we cannot predict the future, we think there is some chance that Gold could reach Gundlach’s target before a sustained correction.
Below is the Gold recovery analog chart or bull analog chart. We compare the current rebound to those from major lows seen in 1976 and 2008. By the way, it is great to be constructing bullish analogs rather than bearish analogs.