Why are technicians expecting $2,000 to $4,000 gold??
"GOLD HAS RECENTLY OUTPERFORMED NEARLY EVERY asset, and if history is any guide, its upward trajectory is nowhere near finished.
John Roque, a technical analyst at Natixis Bleichroder, has lately been focusing on an interesting phenomenon that has proven in the past to be very profitable: The price of gold has surpassed the S&P 500. In three previous cycles, when that situation obtained, gold outperformed the large-cap index by a ratio of 2.5-to-1 to as much as 6-to-1..
With gold at $1,000 an ounce and the S&P around 770 points, the ratio is now only about 1.25 times. At the end of January, Roque identified $1,000 as just a 'first' target for the yellow metal, based on his charts, and wrote that 'ultimately, we are looking for a new high in gold.'
More recently, Roque averred that 'if you own gold here [above $960] it is likely you aren't looking for $980 or $1032.70, [the March 2008 high] as your targets. You are looking for something much bigger. So are we.' "