Gold: The Bottom That Refuses to Confirm

Peter Schiff has been remarkably consistent on gold. On August 12, with gold around $4,412, he declared that “the correction is clearly over” and said gold would likely soon be back above $5,000. Two months later, with gold around $4,145, the enthusiasm survived the decline intact: he called that price “a gift.” Gold bugs have to admire the stamina. The bottom may move, but the conviction apparently does not. We approach forecasting a little differently. On August 26, I charted the top near $4,621. As the decline developed, the structure became clearer, the Head & Shoulders emerged, and we charted the downside targets at $4,040, $3,960, and potentially $3,860. Gold has now entered that target zone. That is the distinction we want to emphasize going forward: not “I said.” I charted it. This was the setup. These were the targets. Opinions can be repeated after every dip. A dated chart…