Prices are pulling back, and we could see a retest of the September low. If the retest is successful, a bottom will be confirmed. A failed retest that closes progressively below $1600 could trigger a downside capitulation.
Gold Retest
After the four drops into the 2021 low, there was a scary retest. Something similar could play out again, and gold may be coming back to test the $1622 low.
Gold Price Forecast
Prices may return to retest the September $1622 low – prices must hold. With global risk rising every day the odds of something breaking in the financial markets is rising. A continued breakdown below $1600 would be harmful and could signal capitulation.
Final Thoughts
My bearish outlook on bitcoin and the stock market is beginning to conflict with my near-term bullish view on gold. It’s hard for me to envision a widespread breakdown in risk assets that doesn’t impact gold negatively. The next few weeks are critical.
AG Thorson is a registered CMT and an expert in technical analysis. He believes we are in the final stages of a global debt super-cycle. For more charts and regular updates, please visit here.
