AG Thorson
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gold, silver

After peaking in August, gold began a multi-month correction into a 6-month low. The bottom appears in, and gold could be starting a new multi-month advance. If silver and miners confirm, we think gold could reach $2300 by January 2021.

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-GOLD DAILY- Gold closed above the intermediate trendline as well its October high ($1939.40) on Thursday. This development supports a divergent low in late October at $1859.20 and a new multi-month advance.

Note- A divergent low occurs when one asset reaches its cycle targets while other, like assets, do not. In this case, both mining ETFs (GDX and GDXJ) made lower lows in October, meeting our minimum targets, but the metals (gold, silver, platinum, etc.) did not – thus creating a divergence.

-SILVER- Silver rallied strongly on Thursday but needs to close above $26.00 to establish a breakout.

-GDX- Miners made new lows in October and reached our minimum cycle target, whereas gold and silver didn’t. Prices need to close above the October $41.34 high to establish a bullish breakout.

-GDXJ- Juniors tagged the corner of our target box and reversed higher. I think GDXJ could outperformance GDX in the coming months.

Weekend Risks: With news of the elections and spiking COVID cases hanging in the balance, there is extreme risk this weekend. It is probably best to wait for confirmation from silver and miners (closing above their October highs), and to monitor developments over the weekend before committing to new positions. I will update members over the weekend concerning Friday’s close.

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, visit here.

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