Bank of America Analyst Macneil Curry says Gold Prices Could Reach $7000

A Bank of America analyst predicted that the price of gold will hit $7,000 per ounce before it comes crashing to earth.

Analyst MacNeil Curry explained his reasoning at the Market Technicians Association meeting in April by outlining how a long climb up by a commodity usually ends with a massive speculative blowup at the end.

When looking at the Elliot Wave, the ascent of gold has been solid and orderly, Curry said. In recent months, the swing in gold has been in $40 per ounce chunks, Curry explained. That same swing has been at about $90 per ounce when looked at from a four week perspective.

Since September, gold has swung about $400 since it reached the all-time high of $1,920.30. He insisted that a long commodity rise will end in a speculative blow-off that is massive.

“They don’t end quietly,” Curry told the members in attendance. He stated that it’s likely that gold will climb into the $3,000 to $5,000 range. The potential to hit the $7,000 target is also a possibility before the gold ascent, which is now in its eleventh year, comes to a climactic end, Curry said.

Even with these price swings, the volatility is not showing enough extreme action to signal an end to gold’s climb, Curry said.  Curry said he would need to see gold prices double in under a year, which would indicate an extreme momentum that would ring the bell and warn that the end is near.

“Until we see price action take some kind of massive speculative blow-off, where prices effectively double in a year or less, I have to maintain a long-term bullish bias,” Curry said.

The end to a secular trend for the bulls could see gold double in under a year, Curry said. The key is to watch momentum closely for fluctuations that are speculative.

Curry pointed to Elliot Wave counts on charts dating back to 1969 that indicate a target price for gold at $6,081. His analysis showed that gold hit the initial Elliot Wave target at $1,801 an ounce. However, he pointed out, the momentum is much too constrained to question the uptrend.

Very low volume is fueling the current price fluctuations in gold, Curry said. He pointed to the number $2,982 as an intermediate price goal at channel resistance.

The risks, though, point to the upside.

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