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.

Watch EWI’s Metals Specialty Service editor Mike Drakulich explain his forecast in this short clip from his July 31 video.

Free Video: Gold, Silver – “Expect a Really Sharp Drop” (Released July 31, 2008)

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

Elliott Wave International