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Gold Price - HardRock's Forecast

|Includes: GBG, SPDR Gold Trust ETF (GLD)
Gold Price - HardRock's Forecast

Using GLD as the proxy for Gold's price, da Rock did some calculus today.  Using regression analysis on the daily price for the last two years, here is what I discovered.  Gold is following a quadratic equation of the second order.  The equation is a squared function.  The equation is in the graph below. 

The R2 statistic for this coorelation works out to .85 which is a rather close fit.  This means that the equation explains about 85% of the action in the Gold price

Then taking this mathematics a step further, I used the equation to predict the prices 120 days into the future.  It seems Gold may be close to breaking the $1400 price barrier by the end of the year.

Earlier in the day I did the same analysis for my favourite gold stock Great Basin Gold, which is here:  https://seekingalpha.com/instablog/415953-hardrock/82397-gbg-price-forecast-double-in-4-months

Now the curious thing is that in the GBG analysis, the regression analysis found that the GBG stock price is following a quadratic equation of the 4th order, which means it is a square of the Gold prices which in itself is a squared equation.  This seem to make sense, as a gold mining equity should leverage the base Gold price.

A word to the wise, there is a definate trend upwards for both Gold and GBG!

Gold luck to you all!
HardRock





Disclosure: Long GBG