Gold Forecast: Gold Prices Pulling Back, Trend Points Higher

Gold prices are pulling back after rising nearly $200 in December. The drop should be brief before turning back higher. There are too many factors supporting gold long-term to keep prices low for long.

GOLD DAILY: This appears to be a simple mid-cycle pullback after testing resistance surrounding $1960. Prices usually find support around the 20-day MA (currently $1881.74). The initial pullback out of a fresh 6-month low can be scary. Try to stay focused on long-term goals.

GOLD 4-HOUR CHART: I’d like to see the 4-hour gold chart hold support around the previous breakout line (approx. $1888) and turn higher after the job numbers. A continued breakdown after the 8:30 employment report could trigger a deeper pullback to $1820 – $1860. Today’s close is important.

Silver and Platinum are leading gold and should outperform gold in 2021. Our educational metals portfolio is long GDXJ, SILJ, GDX.

For a look at all of today’s economic events, check out our economic calendar.

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. He posts daily updates to Premium Members. For more information, please visit here.