After plunging from a high of nearly $1,900 an ounce, gold is set to rally about 20%, to $1,550. Why traders “have not been as bullish since gold prices were under $300.”
The collapse in the gold price from a high of nearly $1,900 an ounce in August 2011 to a low of less than $1,200 late last month has inspired a few gold bears to liken the metal’s outlook to the early 1980s, when it fell nearly two-thirds from its January 1980 peak of $850. That bearish scenario would mean a low of $640 before history fully repeats itself.
But there is also a bullish outlook, and it gains credibility from the fact that its source has called the recent market turns with impressive accuracy. Steve Briese (pronounced “breezy”), publisher of the Bullish Review of Commodity Insiders newsletter, thinks the metal’s rise to nearly $1,300 last week could be the start of a sustained rebound.
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