Central Banks Can’t Stop Gold’s Rampage

By Rick Ackerman, GoldSeek

It was less than a week ago that the Wall Street Journal reported that the central banks of the world, even Russia’s, were acting in concert to prop up the U.S. dollar. With gold’s powerful thrust to new all-time highs yesterday, however, it looks like the bankers will have to come up with a new plan. Our longstanding target for the Dollar Index is 72.93, implying the dollar has a further 2.5 percent to fall before it is likely to find traction for a rally attempt. (Please note that a bounce from 74.05 could also provide bulls with temporary relief.) More important than the dollar prediction, however, is an 1174.90 target for Comex December Gold that has been in play since spring. This “Hidden Pivot” price objective was triggered in May, and it and a lesser target at 1134.50 have kept Rick’s Pickssubscribers properly bullish even as gold swooned, careened and flailed its way higher during the summer months and early fall.

We hadn’t expected December Gold to push past 1134.50 so easily yesterday, but the fact that it turned this “hidden” resistance into suet in less than twelve hours is testimony to the tireless enthusiasm of buyers. Their easy penetration of our target makes a follow-through stroke to at least 1174.90 as close to a sure thing as any market-driven event we could imagine.

After 1174.90, What?

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