"The powers that be will take the price of gold down."That is a...

"The powers that be will take the price of gold down."

That is a common argument but you can only guess to what level. They already have taken it down and in a big way. No-one will try and take it to zero. There will be a low somewhere. How can you know it will be below 1180?. The same argument could have been used in Dec. There was more momentum at that time to take it to a new low. It would have been much easier then as we had a pattern of lower lows. Now the pattern is a base pattern with a strong double bottom. No new low since the low 10 months ago. Less downward momentum now. If they wanted a lower low, Dec would have been the better time to do it. The price is down from 1900. It is already at or maybe even below global cost of production on a total cost basis (depreciation of up front capex included). There will be a bottom. No doubt they were trying to control gold during/after the GFC as well but it still climbed from 700 to 1900. I still see no reason to expect a lower low or even a retest of 1180. I do keep an open mind though. I know it's a possibility but I also know $1500 is just as likely for the next move. I also expect well above $1500 is inevitable within the next couple of years.

Larry changed his mind but only from a very cautious position. He had no conviction last time but this time he appears to have full conviction. His is only one opinion but I hope his record of being right over the last 3 years continues now that he has turned bullish.