James Turk BlogJames Turk BlogJames Turk BlogJames Turk Blog
  • Blog
  • About
    • About FGMR
    • James Turk
    • GoldMoney
  • Books
    • Money and Liberty
    • The Money Bubble
    • The Collapse of the Dollar
Next Previous

Gold’s $1140 Hurdle

James Turk 16 March, 2010

March 16, 2010 – Gold has been stopped time and again in its decade-long bull market by recurring hurdles that appear at an ever-higher price.  During these encounters, several things happen, most notable of which is the growing bearish sentiment in the face of a seemingly insurmountable price barrier.  We are seeing that pattern repeat with gold’s inability to climb above $1140.

It is curious that this pattern repeats.  It suggests that few learn from it, and more to the point, that somehow the fundamental outlook for gold has changed each time one of these barriers is hit.  It hasn’t.  The same factors driving gold higher all decade continue to drive it, mainly the ongoing debasement of national currencies by governments and central banks.

It is also worth noting that the same factors stopping gold at these recurring hurdles, or to put it into technical terms, “resistance levels”, have not changed.  It is central bank intervention aimed at capping the gold price.

At each of these key resistance points, central banks succeed for awhile.  But eventually the demand for physical gold overpowers their ability or willingness to deliver gold at the then prevailing price.  Consequently, central banks retreat and ‘circle the wagons’ at a higher price, which is a phrase I have used as far back as 2001 to describe the actions taken by the gold cartel.  Despite the formidable resistance central banks have displayed in recent months above $1140, I expect that they will be forced to retreat again, as indicated by the following chart.

Gold is moving higher from a huge base, illustrated by the “V” pattern in purple lines.  Note also the “head & shoulders” pattern within this base formed from 2007-to-2009, the importance of which I highlighted in April 2009.

After the break-out from the base, gold jumped all the way to $1200, but has since been correcting.  Importantly, note how strong gold has been throughout this correction.  The price did not retreat to the $1000 neckline of the H&S pattern or even to its 200-day moving average.  This strength, though subtle, is very significant because it signals the power of the underlying demand for physical metal.  It is this demand that I expect will soon send gold hurdling above $1140 and to overhead resistance around $1200.

For my specific trading recommendations, see Trading.

James Turk

More posts by James Turk

JAMES TURK

james_turk_blog

GOLDMONEY

GoldMoney_Inc

MONEY AND LIBERTY

collapse_of_the_dollar_james_turk

MONEY BUBBLE

the_money_bubble_james_turk

COLLAPSE OF THE DOLLAR

collapse_of_the_dollar_james_turk

COMING COLLAPSE OF THE DOLLAR

collapse_of_the_dollar_james_turk

GET GOLDMONEY INSIGHTS

GOLD & SILVER LIVE PRICES

@FGMR RECENT TWEETS

  • Flight out of #USD picked up momentum today. #US #Dollar Index finally sliced thru 102, but not yet oversold. Now h… https://t.co/lmAjCkTu18

    4 days ago
  • The #US #Dollar Index is hanging over the edge of a cliff. Is this the week it takes a tumble? Or does it hold 102… https://t.co/7UsxODumnX

    7 days ago

FEATURED VIDEO – July 8, 2022

FEATURED VIDEO – January 10, 2022

Categories

  • Articles
  • Books
  • Briefcase
  • Gold
  • Gold News
  • Market Commentaries
  • Silver
  • Trading
  • Uncategorized

TOPICS

bitcoin bonds central banks currencies debt dollar doug casey ecb economy euro fed gold greece hyperinflation inflation markets mining stocks MMGA money oil Politics QE recommended silver stock market trading Trump usd us dollar Washington

ARCHIVES

  • You may also like

    Natural Money

    Read now
  • You may also like

    Gold’s Bull Market Enters Phase 2

    Read now
  • You may also like

    Positioning Yourself for a ‘New’ Bull Market in Gold

    Read now
  • You may also like

    Transferring Power to the People

    Read now
  • You may also like

    What Did J.P. Morgan Mean?

    Read now

ABOUT

FGMR My objective is to share with you my views on gold, which in recent decades has become one of the world’s most misunderstood asset classes. This low level of knowledge about gold creates a wonderful opportunity and competitive edge to everyone who truly understands gold and money.

RECENT POSTS

  • The Forgotten Fourth Function of Money & G-SIBs

    Money is routinely defined by what it does, rather than what it

    13 December, 2022
  • A Century of Fascism

    In 1922 Benito Mussolini became prime minister of Italy, putting that country

    31 August, 2022

TAGS

bitcoin bonds central banks currencies debt dollar doug casey ecb economy euro fed gold greece hyperinflation inflation markets mining stocks MMGA money oil Politics QE recommended silver stock market trading Trump usd us dollar Washington
Copyright © 2001-2022 Free Gold Money Report | All Rights Reserved
  • FGMR
  • GoldMoney
  • James Turk
  • Money and Liberty
  • The Collapse of the Dollar
James Turk Blog