Gold is going up **Update w/explanation**

$1250 was definitely a resistance level for gold since last November when it was almost reached. I see it hitting $1400 soon, within the next month. Then I'd see some resistance for 2-4 months at $1400; on it's way up to $1500.

I've been following gold for almost 5 years. I've noticed that once it breaks through a major resistance line, it goes up fast. At that time nobody knows the limit, but it's up there somewhere. It's been expected (by the msm megaphone) to hit $1500 shortly after it stayed above $1000. I'm sure there will be profit taking at $1400 before it hits $1500. From there, I give it 1.5-2 years before it hits $2000.

I am not a broker, so, for legal purposes, I want that to be clarified. I'm just an observer giving my opinions on the value of gold based on what I've noticed. What is everyone else's opinion?

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*** Updated Explanation
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I know gold has been going up and the general trend is up. Reading charts and predicting the future of any commodity or liquid asset is easy to understand.

Once again, I'm not a broker or and I haven't thoroughly studied the subject.

I've seen a couple of videos that my friend paid for about resistance/support levels on charts. The video said the rolling averages and resistance/support levels matter more than the actual asset. It focused on more responsive and shorter timed graphs, with 1 minute ticks. However, the resistance/support levels of longer term graphs have similar trends.

http://www.kitco.com/charts/popup/au3650nyb_.html

Gold first hit close to $400/oz what looks like early 2003. Between that time and September 2003, gold narrowed in on $400/oz, which was a resistance level caused by the previous high approximately 9 months before. Upon breaking that level it stayed above it for a significant amount of time (weeks, in this case months). Thus, a new support level was created. It was tested and held for a while until the only way to go was up.

In February 2006 I started watching gold closely. I'd heard it was going to be going up. By May 2006 it hit a recent high at $730/oz. I tend to notice that the resistance/support levels sometimes hit an exact level at what the recent high/low or they levitate towards a more psychological alternative rounding to the nearest $50, but usually $100. In this case, it did not spend much time above $700, but it was definitely above it. I felt like $700 was the new resistance level over $750.

http://www.kitco.com/charts/popup/au1825nyb_.html

Over the 20 months the price came close to hitting
$700/oz. Finally in Septemer 2007 it broke that resistance level. As the way it has been with gold these past 8 years, breaking resistance levels looks like it has no limits and it goes up fast.

Some profit takers came in around $800/oz. You can see the price kept going up and down, but narrowing towards $800. Once it came close to the point of an arrow caused by the fluctuation, it continued up. Some resistance around $900, but ultimately the psychological expected high of $1000.

From there it dropped because the economy was noticeably collapsing, and people trusted paper first. It got as low as its support level, above $700/oz., created about 2.5 years before. Then once again the world woke up and it marched right back up to $1000. It found support at $900, which showed it was narrowing in on $1000. It broke $1000 after trading close to it 4 times. Fifth time's a charm?

http://www.kitco.com/charts/popup/au0365nyb_.html

It dipped below $1000 breifly as the major investors knew it was going to go up. $1050 quickly became a safe support level indicating it was not going to go below that. It quickly jumped up above $1200 in about a month. Then a couple months later it dipped back to it's support, above $1050/oz. It finally reached back up to the $1200 mark about 6 months after it's first hit. In May it stayed above $1200 for a significant amount of time (weeks), but it didn't break $1250, the new resistance.

In August I noticed it was narrowoing in on $1250. I was bracing, until a week ago when I saw it jolt $10/oz. above $1250. The quick move indicated it was serious, because for weeks it wouldn't move away far off from $1250. I spoke too soon forgetting about profit takers who time out the markets the best they can for the quantities they trade. They saw the quick move and knew it was going up. It plummetted the next day back to below $1250.

I'm sounding the alarms now because it just went above a resistance level. Which means we "don't know" what the next resistance level will be. I believe it will soon (month or two) be $1400, then profit taking, then shortly after that (months) be $1500 (the next psychological resistance).

Ultimately I believe Peter Schiff is right when he says gold and the Dow Jones Industrial Average will meet, or at least come close.