Gold Forecast – Gold Starting Final Drop into Intermediate Low
The battle between Trump and the Democrats over further stimulus is causing erratic and volatile swings in gold. Last week’s convincing rebound was just a head-fake, gold should resume its downtrend towards $1800 and bottom in late October.
GOLD DAILY CAHRT: Last week’s stimulus negotiations created a second 3 to 5-day rebound in the form of an ABC correction. That rebound appears over, and we expect a secondary decline into late October. Overall, we think gold could bottom around the $1800 level (+/- $20.00).
Our Gold Cycle Indicator remains elevated at 235 after Friday’s strong close. It should descend below 100 and enter minimum cycle bottoming as metals and miners approach the next low.