But only when it is in place! For the past two plus years (120 weeks) gold has been resting in a dresser drawer after doing its duty for 11 years. That may be about to change.
The author of the title's quote, Tim Herbert, and I have been looking at the price of gold from a William D Gann perspective. One of Gann's price projection methods is to take multiples of an important price in the past and add them to that past price. An example would be corn whose price back to the 19th century has often stopped or started from $1, $2, and $4 per bushel.
For gold $35 was the price for gold from 1934 to or from the US Treasury with only occasional diversions at the end of WWII and in the 1960's.
The Gann multiples or "squares" are not always precisely the turning points, but they are often "almost" right. 105 was near the 1976 low. The 1980 high was close to 24 x 35, and the 1999-2001 lows very close to 7 x 35. The 2011 high was very, very close to 55 x 35. And 1190 where price is hovering this week and where we touched in June is 34 x 35. Phi (Fibonacci) watchers will see that 1190 has a Phi relationship t0 2011's 1925.
Gann saw junctures like this as reasonable places to speculate from, and we are just about 120 weeks from the 2011 top, another Gann method. In his courses he stressed the need to take your lumps early if it didn't work that time.