Fear…you can smell it. Like the acrid smoke rising from a fire. This week, Goldman Sachs and George Soros re-affirmed that something is wrong in the jungle. Someone out there is painfully short Gold and that injured someone is calling in his friends to help him out of a bad squeeze before he gets eaten alive.
Soros came to the rescue by saying he had sold half his Gold ETF holdings in Q4 2012. Goldman Sachs followed by stating that Gold prices will not go any higher this year.
What did Gold do in response? Indeed, it went up. The battle lines have now been drawn. Predator versus prey. Game on.
The embedded image in this post shows a classic Gartley setup, but it is a failed pattern as point D has exceeded X. I have joined several of the points and what results from a failed Gartley is a butterfly pattern or a bat pattern. In the case of this Gold chart, the move X to A is $70. $70 x 1.272 (which is root of phi) gives $89. Subtract $89 from the closing value of point X and you get $1561 which is pretty darned close to the lows made Feb 21. So, even with a failed Gartley pattern, the harmony of phi shines through… I am not looking for Gold to rocket higher in a straight line from the Feb 21 lows. The current rally will hit some resistance as the dark forces of Soros and Goldman Sachs try to douse the flames. Sun-Pluto aspects may also play a role, such as the Sun-Pluto sextile event on Mar 1 (today…).