Gold price closely mirrors 2011; is a crash coming with no recovery? Gary Wagner

New York (Jan 28)  Gold's price pattern from January, 2019 to 2021 mirrors that of gold in the same two-year period, starting from 2010; both time periods saw gold rise to a top in the third quarter and both times saw prices drop from its high in almost identical magnitude and timing.

Should this similarity hold, then gold could bottom out to 2015 lows and stay flat for years with no recovery in sight.

However, Gary Wagner, editor of TheGoldForecast.com, said that this similarity should diverge and in time, gold will climb out of its current consolidating range.

"I think it is less likely now, and that is because of the unique environment we find ourselves in. Not only are we doing quantitative easing, with interest rates near zero, but we spent in the first round $3 trillion in fiscal stimulus. They bailed the banks out last time but this time, they're providing capital in other ways [through the Treasury]," Wagner said.

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