In the hyperinflation that reached the peak in January 1980, gold prices peaked at $870/oz.
After retreating in the following years to a low of 300/oz, the 9/11 attack started a bull market that propelled gold prices to more than double, and they reached $1900/oz in September 2001.
Fundamental Analysis:
Unless we will get involved in world war 3, or if we believe that the current economic system is not adequate, then the gold bulls may be in for a surprise.
Technical Analysis:
My indicators are showing a strong sell signal.
Target:
A normal 50% retracement will bring prices down to $1400/oz.
This may happen soon.
Current price is $1650. If prices drop to $1400, a profit of $25,000 is in the cards.
Margin requirement: $10,000.
