Gold Price Forecast – Preparing For An Autumn Low
Gold futures are trying to hold support near $1500 ahead of next weeks Fed announcement. Our intermediate forecast supports a pullback into October/November. A backtest of the $1380 breakout area could become one of the last great buying opportunities.
Sometimes one chart can some up years of commentary. For an eagles-eye view, I prefer the monthly chart. It minimizes daily/weekly fluctuations and paints a clear picture. The monthly chart of gold is screaming - BREAKOUT!
Monthly Gold Chart
Take a good look at the chart below. Notice the rounded bottom that preceded the 10-year bull market that began in 2001. The same pattern is unfolding now. The price of gold recently broke out of the rounded bottom on record volume. If we get a repeat of the 2002/2003 pattern, a backtest of the $1380 breakout area may become the last great buying opportunity.
Longer-term, we expect gold to complete the larger 10-year pattern and breakout to new all-time highs in 2021 or 2022.
As prices correct, precious metal investors should assemble a list of their favorite gold and silver stocks. I still like the potential head and shoulder bottom setting up in Coeur Mining (CDE) described in my article A Top Becoming Likely.
Our proprietary cycle indicator remains in neutral territory after peaking in August. I won't expect an intermediate low until it slips below 100 (currently 321).
AG Thorson is a registered CMT and expert in technical analysis. He believes we are in the final stages of a global debt super-cycle. For more information, please visit https://goldpredict.com/
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Gold-Eagle provides regular commentary and analysis of gold, precious metals and the economy. Be the first to be informed by signing up for our free email newsletter.
AG is an accredited CMT through the MTA and the editor of GoldPredict.com. His members receive daily updates and regularly scheduled reports 3-days a week. He prides himself on making his analysis easy to understand through the use of adaptive and creative charting methods. You can reach AG at [email protected].
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