Gold update 15 Jan 2010

Hello again.  I am inclined to say that the post of 31 Dec was based on incomplete data for the short term because of the gaps. I had assumed (presumably incorrec tly) that we had an overlap. Perhaps the 4th wave was lost in the gap, and we really had a full 5-wave pattern there? Go back and take a look at the first chart for 31 Dec, and you will understand what I am talking about. In any case, the view in the bigger picture was that we will get a rally in Gold, and sure enough, we have already seen a move from 1074 to 1161 (over 8%). The key question to ask now is whether this marks the end of the move.

From the notations on the chart to the right, you will observe that we have completed what looks like a 5 wave move from the low at 1074. As we know, a correction can never be made up of 5 waves. So either this is the beginning of a larger correction, or this is the 1st wave of the final impulse wave. Either way, I think we will get a further rally in the coming days. So be prepared for that upmove. Commodity traders, and especially those wishing to hedge their Gold purchases should take this likelihood into account.