With gold accelerating today’s gain in access market trading to over $57, King World News interviewed James Turk to get his thoughts on where gold and silver are headed from here. When asked about the action in gold Turk stated, “This was a big day and a great close to the week. The strength that gold displayed suggests that we are going to probe $1,900 very quickly, possibly as soon as next week. What seems apparent is that a lot of people jumped on the short side and are now caught, so the short covering rally could be quite spectacular.”
“I read KWN’s interview with Pierre Lassonde and I agree with Pierre that gold should hit $2,000 within 30 days. One of the primary reasons will be the fuel from all of the short covering. The big news today Eric is Bernanke’s speech. He left the market hanging by not giving any firm conclusions today regarding the printing press. The fact that the Federal Reserve has changed their September meeting to two days instead of the normal one day indicates something is afoot.
Given that policymakers have only one remedy for every problem, which is to print money, we can assume QE3 will be announced next month. Even though gold was showing strength all day long, it should be no surprise that gold started moving higher after Bernanke’s speech.”
When asked about silver specifically Turk resonded, “Even though silver hasn’t been getting much attention lately, it is important to note that its low was made back in early July. Since then silver has been in a steady uptrend and it looks like the power of the accumulation that we have seen over the past couple of months is about to be unleashed.
“As gold approaches that $1,910 record high, silver will probably be over $44. It looks to me like the gold/silver ratio is about ready to start falling again. Consequently, I expect silver to hurdle above $50 in September.
As good as it looks for gold and silver, I am even more impressed by the gold mining shares. Although they are still in the same trading ranges that started forming ten months ago, the shares are displaying good relative strength. I take that as an indication that the shares are finally ready to begin that rocket launch everybody expected six months ago.
Sometimes it just takes patience for the market to go your way, but the bright side is it has given us six additional months to accumulate undervalued mining shares.
There is an interesting development here Eric, everybody is talking about the big $200 three day drop gold made after its $1,910 high. What’s important to me is not that drop, but rather that even after that big hit, gold was still up $70 from the end of July. That price appreciation this month is what people should be focusing on and more importantly that gold remains in a very powerful uptrend, which will take gold to new record highs in short order.”
