First of all, please ignore anything the CNBC commentator says – I wish I could screen him out.
I present this video due to the sentiment readings for gold that Prechter points out. I don’t think it’s wise to ignore what he’s saying for maybe the short or medium term. In the long term, until the debt and structural problems with the currencies are cured, the bullish case will continue to make sense to me. Therefore I see both sides of this issue and would probably present their cases as a matter of timeframe (ht RRH):
I will note that gold has obviously had a very steep ascent in this latest move, but it did recently trigger a new bullish target on the gold Point & Figure diagram of $1,310. Perhaps the move continues into that range but then experiences some pullback or consolidation until the fundamental problems underlying the currencies are either resolved or come to the forefront again. Personally I think the issues will keep resurfacing until they are resolved and that technical patterns may give only temporary respite.