Gold Price Forecast: Possible Bounce Underway

Gold may well have begun our forecast bounce last week. Our algorithm is still looking for a higher price as we enter the end of the month to relieve this oversold condition. Ideally we would still like to see the price of gold get back to around $1300 before we begin to fall again.

As we enter the final few days of the month our longer-term forecasts still indicate a slow and steady decline into 2017. However, should we not have our bounce by the end of this month, then we would begin to forecast the possibility of a steeper bear trend than we had originally forecast. Ultimately this would lead to the final low in 2017 being somewhat lower than expected.

We do not expect gold to fall in isolation over the next few months. Nonetheless, we are still expecting other markets to correct going into 2017, including global stock markets and peripheral currencies as the US Dollar Indexonce again becomes the go to currency. This Dollar strength will continue well in to 2017 - and will continue to provide a headwind to Gold until it reaches a climax.

At present we are forecasting a correction. It may be that markets correct more than we are forecasting, which some may call a crash (but we do not use such terms as they may make for great headlines). Crashes are rare and corrections are normal.  What some may term a crash as far as our long-term forecasts are concerned, we consider it as a normal event in an ongoing long-term bull market.

Our recent FOREX forecast has continued to be very accurate with both the Euro and the UK Pound falling against the US Dollar and the Yen (as we have been forecasting). We expect most major global currencies to begin to reach parity over the next year, which may well become a significant event for other asset classes.

You may view live short-term forecasts at our website. They are a representation of our medium and long-term forecasts, which always show the complete picture, where prices tend to be more random day to day than they are week to week or even month to month. Our short-term forecasts are always anchored against these larger patterns that barely change from week to week. This is what allows us to be so confident with our shorter-term forecasts in spite of the increased volatility.

Taking patterns in nature that repeat over different time frames like fractals as the basis for the forecast methodology, our forecast patterns can last for months and years. Thus, we create a most probable long-term fractal pattern, which we continually test and model over multiple time frames to ensure the pattern remains a probable event.

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