Below is a chart of the inflation adjusted gold price over a long period of time.

As you can see, it is no wheres near its inflation adjusted high registered back in 1980.

Alf Fields, a master at his craft, says that he believes gold can make $10000 based on his expertise in Elliott Wave theory.

We are in wave 5 of 1 of MAJOR THREE. Gold will push upwards to $1350 in this move it is currently in. That will conclude wave 1 of MAJOR THREE. Following that, we will see gold move lower until it reaches $1030. That will be corrective wave 2 of MAJOR THREE. Then we get the best move of the entire bull run so far – wave 3 of MAJOR THREE.

The technical indicators on a weekly basis are very, very positive. The weekly close above $1175 will bring in the momentum funds beginning next week. It is this inflow of money that will fuel golds rise. The backdrop of all this is what is going on in Europe.

Isnt it interesting how events coincide with the cycles of gold? The better understood the cycles of gold are, the more clarity that can be brought to events of international importance. It leads to an interesting query – do the cycles in gold drive world events – or do world events drive the cycles in gold?

The chart original is courtesy of Dan Norcini. I have added from golds current level along with my comments.