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Metals , Investing

Why Gold’s Next Big Move Might Surprise Many Investors

History shows that gold’s price has a way of defying extreme bullish or bearish sentiment

by Bob Stokes
Updated: December 19, 2019

Right now, some of the biggest institutions in the world of finance are giving gold a big thumbs up.

As a Dec. 10 Bloomberg article notes:

Gold's impressive advance in 2019... may be set to spill into the new decade.

As 2020 looms, BlackRock Inc., the world's largest money manager, remains constructive on bullion as a hedge, while Goldman Sachs Group Inc. and UBS Group AG see prices climbing to $1,600 an ounce -- a level last seen in 2013.

Bullion is heading for the biggest annual advance since 2010.

When the heavyweights of the financial world are in unison about the price direction of a financial asset, perhaps it's time to get on board.

Then again, perhaps not.

You see, back in 2010, forecasts for gold were also highly bullish.

This chart from our Elliott Wave Financial Forecast notates the strongly positive sentiment for gold in 2010-2011:


You'll notice that at a point in 2010, the Daily Sentiment Index ( had reached 98% bulls. Then, in 2011, radio ads were forecasting that gold would reach $5,000 an ounce. And, speaking of big financial institutions, Societe Generale said that gold's fair value was $10,000 an ounce. As you'll also notice, that was said around the very time that gold reached its all-time high of $1921.50 an ounce. At the time this chart published, gold had already started a big slide.

By December 2015, the yellow metal had slid more than 45% from that all-time high.

Fast forward to December 2019. Yes, it's possible that the precious metal may climb higher from here. Sentiment, after all, is not a very precise market-timing tool; markets can stay overbought or oversold for days, weeks and even months.

That's why it's so important to combine sentiment indicator readings with Elliott wave analysis. When you see the waves of market psychology confirm the sentiment extreme -- well, now you've got something to get excited about.

EWI's analysts are tracking both sets of evidence right now. You can review it risk-free for 30 days and make your own decision as to what's next for gold. Look below to get started.

“Only One Message.”

That's how the first paragraph of the just-published January 2020 Elliott Wave Theorist concludes.

The entire Theorist focuses on the price behavior of the Dow Jones Industrial Average and reaches historic conclusions about what's next.

Here's an excerpt:

Two years ago, in December 2017, The Elliott Wave Theorist published a set of Fibonacci multiples projecting a maximum daily closing high for the Dow Jones Industrial Average in the very narrow range of..."

The hot-off-the-presses Theorist goes on to explain why that two-years ago forecast is relevant now.

Read it for yourself -- without delay. It's that important. It's that timely.

EWI offers a risk-free trial (In other words, you can read the January Elliott Wave Theorist and not spend a penny). Look below to get started.


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