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Gold at $801 (Video): Why Is Price Falling?
Is the rally in the dollar the only reason for the decline in gold and silver?

By Vadim Pokhlebkin
Tue, 12 Aug 2008 19:15:00 ET
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On August 12, gold and silver hit the lows they've not seen in almost a year: Gold dropped to a low of $801 an ounce in the intraday trading, and silver fell towards $14.
 
The talking heads on the financial TV networks are blaming the declines on the ongoing rally in the U.S. dollar. But was there a way to predict this drop in gold and silver without resorting to the currency markets?
 
There was. On July 31, the editor of Elliott Wave International's Metals Specialty Service, Mike Drakulich, called for a "washout" in both of these precious metals. And, Mike made that forecast -- for a drop to as low as $800 in gold and $15 in silver -- based only on the Elliott wave patterns in the metals' charts.
 

Invest in gold?
Get up-to-the-hour forecasts online now, inside EWI's Metals Specialty Service. Details.
 
Watch EWI's Metals Specialty Service editor Mike Drakulich explain his forecast in this short clip from his July 31 video.
 
 

EWI's Metals Specialty Service brings you intraday and daily forecasts for almost a dozen of precious and base metals. Details.

Tags: Gold, Silver, decline, u.s. dollar

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The Elliott Wave Principle is a detailed description of how financial markets behave. The description reveals that mass psychology swings from pessimism to optimism and back in a natural sequence, creating specific Elliott wave patterns in price movements. Each pattern has implications regarding the position of the market within its overall progression, past, present and future. The purpose of Elliott Wave International’s market-oriented publications is to outline the progress of markets in terms of the Wave Principle and to educate interested parties in the successful application of the Wave Principle. While a course of conduct regarding investments can be formulated from such application of the Wave Principle, at no time will Elliott Wave International make specific recommendations for any specific person, and at no time may a reader, caller or viewer be justified in inferring that any such advice is intended. Investing carries risk of losses, and trading futures or options is especially risky because these instruments are highly leveraged, and traders can lose more than their initial margin funds. Information provided by Elliott Wave International is expressed in good faith, but it is not guaranteed. The market service that never makes mistakes does not exist. Long-term success trading or investing in the markets demands recognition of the fact that error and uncertainty are part of any effort to assess future probabilities. Please ask your broker or your advisor to explain all risks to you before making any trading and investing decisions.

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