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Gold Price Forecast – Don’t Miss the Next Leg Higher

By:
AG Thorson
Published: Jan 15, 2020, 19:53 GMT+00:00

A lot of investors remain bearish on gold expecting a deeper correction. Our work suggests the recent pullback is nearly over, and traders should prepare for fresh highs. 

Gold

Our system is straightforward. Approximately every 6-months precious metals form intermediate lows – I refer to them as “6-month” lows due to their frequency. Once the cycle bottoms, we go long the subsequent advance. On average, our system holds trades anywhere from 2 to 4 months.

A TEMPORARY BREATHER

The most recent 6-month low arrived November 12th, 2019. After the initial breakout advance to $1613.40, prices are consolidating at the 10-day EMA and taking a breather. Similar to the mid-cycle correction in July of last year. Soon, the cycle forces will take back over, and gold will resume its path higher.

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The current advance should rally into March before finally peaking. Target wise – we think gold could test $1700 with the potential for higher depending on geopolitical events. The next 6-month low isn’t due until May 2020.

Investors looking for juiced returns may want to look at silver and platinum for the next up leg. Platinum is just breaking out to fresh highs, and the trend in silver is likely to accelerate sharply into March.

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/

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.

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