Gold Price Forecast – A Sharp Decline Becoming Possible

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Published: Aug 19, 2020, 16:35 UTC

We see the potential for a sharp decline as prices descend into the next 6-month low.

A few days ago, I mentioned the potential for a Bull Trap in precious metals. Gold and Miners failed to recapture those critical levels, and the next leg lower has probably begun.

GOLD UPDATE

Gold needed to close back-to-back above $2000 to support a retest of the $2089.20 high. Prices failed to hold $2000 and have begun to roll over. The second and more severe decline may be occurring.

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GDX DAILY UPDATE

Miners failed to recapture critical resistance near $44.00, and the next leg lower has likely begun. Prices could decline sharply towards the 200-day MA (currently $31.39) over the next 1 to 2-weeks.

Our Gold Cycle Indicator remains in topping territory (currently 381) and needs to drop below 100 to trigger the next buying opportunity.

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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 here.

About the Author

AG Thorsoncontributor

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 that will begin to unravel in 2020.