McEwen Predicts $2000 GOLD in 2010

I have showed you McEwen's favorite DOW:GOLD ratio charts. In fact, McEwen's DOW:GOLD ratio target is 0.5. In his recent interview with Kitco, he is predicting $2000 GOLD in 2010 and $5000 GOLD when the dust clears. Let's see how McEwen's $2000 target for 2010 lines up with a Fibonacci extrapolation:

Notice how the TRIX(8,5) oscillator is flattening and looks like it want to curl up. I like to use Fibonacci numbers for TRIX periods to look at trends in different time frames. Let me show you:

Weekly chart:

Note how the long term TRIX (55,34) and (89,55) are looking like they are forecasting higher GOLD prices.

Daily Chart:

Short term TRIX (21,13) and (34,21) are forecasting higher GOLD prices as well ... In the medium term, it looks like GOLD is still consolidating - like a hurricane gathering energy ...

Revisiting the DOW:GOLD Ratio

If you are a GOLD Bug, then you know who Rob Mcwen is. You  then also know that his favorite chart is a chart of the DOW:GOLD ratio. During any of his presentations, he pulls out this chart to state his case why you should be investing in GOLD. Let's take a look 3 different time frames:

The daily chart is showing a 50% Fibonacci retracement followed by a breakout.

On the weekly chart, the Bollinger Bands are tightening and the ratio is approaching the long term down trend line. Decision point is around the corner ...

Definitely a decision point is right around the corner. However, the charts at this point are favoring a resumption of the uptrend that started in March 2009. Inflation? Reflation?

Let's take a step back ...

Step way back and take a look at the last 200 years - DOW:GOLD Ratio