So, how is the gold price progressing?

Stocks and commodities seldom move up and down in a straight line. If you had read graphs for most of your professional life (I did as a scientist for over 25 years), you can just look at a graph and certain things jump out at you. In other words, you are used to capture the essential message of a graph almost instantly. So, let's look at these two graphs for what they tell us.

The top graph compares the changes of gold price in three currencies: US dollars, Euros and the Japanese Yen. From 2007 onwards, the dollar is the weakest of the three currencies (it goes up quickest). Up to the end of the summer of 2008, the Euro is the most stable, but in 2009, the Yen and Euro change place, so that now gold increases more in Euros than in Yen. We note that in about March of this year (when the Obama regime began to print dollars in earnest), the price of gold in dollars begins to rise steeply and the curve accelerates toward the end of the year, which is now.So, the value of the dollar is falling faster than the value of either the Yen or the Euro and that is why it takes more and more dollars to buy an ounce of gold.

We can now examine the second graph for some clues re timing of the changes in gold prices. We see that the majority of the changes take place in two week intervals. The July up leg takes about two weeks, followed by a short down leg. Then there is a very short down spike in July, followed by a very short up spike in August and a one month trough that has two two week segments. Then gold breaks out of its trading pattern in September and rises for about two weeks and corrects for about two weeks. The current upleg began at the first days of October and took about two weeks to reach top. We are now in the down phase that might last till the first of November. Then a new upleg should start that might take gold up to about 1120USD/oz.

As you see, the length of the moves is not exact at this level, but if you smooth the averages, you get what looks like a sine wave. The sign wave turned upward in September - that is, the center line that can be drawn through the sine wave has now a positive slope. Which means higher prices up ahead.

At this point, the rise in gold prices reflect central banks and large entities hedging themselves against inflation(i.e. a loss in the value of the dollar). Gold prices will be rising relatively slowly with intervals of drops in prices. When small investors and the public discovers the scam the Obama regime is running, the rise in gold prices will quicken. God willing, I will be here to show you the graphs.