Gold Breaks Through Critical $1200 Level, Next Stop $1600?

The exceptionally talented Trader Dan Norcini who writes for Jim Sinclairs website MineSet, recently posted an extremely interesting inflation adjusted chart of gold (which we have enclosed below). According to Dan:

As you can see from the inflation adjusted chart, the $1200 level is quite significant which is why a battle is raging around it. Based on this inflation adjusted chart, a move above this level will put gold solidly above all of the major Fibonacci retracement levels associated with its monthly closing price. That would set it up for a run to near the $1,590 – $1,600 level which is not all that far off from Jim’s $1,650 number.