Gold Price Forecast – Approaching A Bottom

After peaking in September, gold entered an extended correction. Our cycle work suggests an impending low. The technical setup favors one final decline before prices bottom in early December.
AG Thorson
Comex Gold

Gold’s Cyclical Nature

As with any financial asset prices go through periods of range expansion and contraction – think of it like breathing. As prices rise, the market inhales – as they correct, it exhales. The natural progression in gold tends to shape bottoms every 6-months.

Below is a weekly chart of gold from 2007 to 2012. The blue arrows represent 6-month lows. Of course, not every cycle is equal, but take note of the cadence or rhythm to each low.

The Approaching Low

The last 6-month low arrived at $1267.30 in early May. The current technical setup favors one final decline into early December to complete this cyclical correction. During the next advance, gold should challenge $1600+.

The Close-Enough Approach

Picking the exact 6-month low is difficult, more so now than ever. Today’s markets are highly reactionary – a result of social media. One day stocks rally on thriving trade negotiations; the next day, they crash after a Trump tweet. Predicting these events is futile.

Consequently, I’ve adopted a “close enough” approach. When gold gets within striking distance to a 6-month low, I say close enough and begin adding to my metal’s portfolio. To determine the suitable “striking distance,” I wait for the Gold Cycle Indicator to drop below 100. The GCI closed at 94 Tuesday November 12th (currently back up to 118).

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 https://goldpredict.com/

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.