How has Gold performed against the Sing$ and Myr ?
What to expect over the next 2 years ?
Written and posted by IPM Group 20th April 2015
Please note: Disclaimer at the end of this article.
Gold charts are courtesy of goldprice.org
Gold has corrected within this great economic depressionary environment the World is presently experiencing.
Obviously the world’s central bankers and governments are fighting this economic depression with every tool they have at their disposal and a few others they recently invented, considering the fact that the only way to battle against the world debt mountain is through inflation (depressions escalate the pain of debt loads very quickly indeed).
On the 6th November 2014, near 6 short months ago Gold retested a level against the Singaporean dollar not seen since the 5th February of 2010 (a fantastic buying opportunity indeed). An extremely healthy correction within the greater secular bull market this metal is presently in.
According to cycle analysis (Armstrong’s computer generated cycles, by far one of the most accurate over the last few decades) the Gold bull market is looking to run into the year 2032. He recently stated….
From the longer-term perspective, gold rallied perfectly in line with our long-term cyclical models bottoming in 19 years during 1999 following the 1980 high at $875. From there, Gold rallied for 13 years, which was also precisely on track establishing the highest annual closing at $1675.80 in 2012 with the intraday high remaining during the previous year 2011 at $1920.80 in line with the low in the Economic Confidence model.
Switching into a long-term perspective gold is poised for its final high on this run in the year 2032. New highs should also be seen in 2017 and 2020 against the US$ from cycle lows in 2015. Panic Cycle Models suggest that higher volatility is due the year of 2017.
Gold then rallied quickly into mid January 2015 seeing a 17.5% appreciation against Sing$ and a 22.5% return against the MYR in just 10 weeks !
After such a sharp quick appreciation we have come back somewhat (nothing moves in a straight line), but still some 9 % higher than the October lows against the Sing$ and 14.5% in the Myr.
Another fantastic buying opportunity in gold within the bigger picture ?
What is the immediate future have in store for these currencies? Well we wrote about the 9 Trillion US$ carry trade and the enormous upward momentum of the US$ to the severe detriment of currencies such as the Myr and Sing$.
Possible new highs in Gold in 2017 against the US$ is a testing of over US$ 2,000, with that in mind and the fact emerging currencies are under severe pressure (carry trade), then MYR 7,500 to MYR 8,000 gold ounce is very much a clear target, with Sing $ 3,000 in Gold.
6 Month Chart of Gold ag Sing$.....
10 Year Chart of Gold ag Sing$ - A clear trend line is in place......
6 Month Chart of Gold ag Myr.....
10 Year Chart of Gold ag Myr - A clear trend line is in place......
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