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Gold Will Correct in October
Pinnacle Digest writes: Gold will correct in October... at least that is the sentiment of Jordan Roy-Byrne who believes gold has come up against resistance at $1800 and will need time to consolidate its recent bounce from $1550. This correction will provide yet another entry point for those wishing to add to their positions in gold and gold explorers and miners.
Once the relatively short-lived consolidation near $1800 has completed, a break past $1800 would create a new initial target of $1900. Since $1800 is stronger resistance than $1900, we can apply its distance from the bottom ($1550) which projects to another target of $2050. Roy-Byrne believes that upon a breakout past $1900, the market could be setting up for a potential cup and handle pattern which projects to a minimum of $2250 - smashing gold's all-time high.
Our team at Pinnacle believes this will be the trigger for the juniors and a massive rally across the entire sector, leaving only the weak gold companies behind. The psychological impact of $2000 gold should bring the world's attention back on the junior gold miners of Canada.
Roy- Byrne states that, "The next breakout should result in a retest of the former highs. Moving beyond the medium term, we see a target zone for Gold of $2300 to $2500 and GDX to 90-93."