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Can Gold Reach $2500?

Here's why gold could skyrocket
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Gold is the ultimate form of money. It's been the dominant international currency for centuries, long before the introduction of paper money.

In recent weeks, gold has been trading quietly, drifting between $1660 and $1775 per ounce. In the short term, gold has no apparent trend and could move in any direction.

golddaily

However, the long term chart is telling us a very different story. 

Gold has been forming a massive consolidation pattern since 2011. Take a look at Gold's monthly chart:

goldmonthly

Over the past nine years, gold has formed a massive rounded bottom pattern, highlighted in green. On the far right of the chart, you can see the current sideways movement of the past few months, within the blue dotted lines. 

Let's measure this pattern.

The bottom of the pattern is approximately $1100, and the top of the pattern is near $1800. The distance from bottom to top is $700. 

Now add that $700 to the top of the pattern, which is $1800. The result is $2500. 

What are your thoughts? Let me know in the comments section. 

To learn more about chart reading, CLICK HERE