Gold Price Forecast – Gold Nears $1700 Target as Stocks Plummet
Gold surges toward our March $1700 target as the DOW plunges nearly 1,000 points.
In January, I posted: Gold Price Forecast – Don’t Miss the Next Leg Higher. At that time, I wrote, “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”. Below is the chart from that article.
Note: Gold bottomed at $1536.40 on January 14th and followed our expectations precisely. Next, we are looking for a cycle peak.
Gold Cycle Indicator
Our proprietary gold cycle indicator (GCI) surged to 405 and entered maximum topping with today’s intra-day spike to $1691.70. Reaching maximum topping doesn’t mean prices will peak immediately. It merely suggests the 6-month cycle is approaching maturity, and we should start preparing for a top.
Below is the gold chart from our Weekend Newsletter: I’ve drawn my preferred target box for a cycle peak in March. Of course, an unforeseen event could drive prices higher or lower than expected. My estimate suggests a target between $1685 – $1730. On the off chance, the coronavirus drives US stocks piercingly lower in March, then gold could extend to around $1785.
Note: Metals and miners often reverse or change trend in the opening days of a new month. With the GCI currently above 400, I’ll be monitoring the price action during the first week of March closely.
Our Cycle Trading System went long NUGT in December and USLV in January. I will look to exit these positions in the coming days once a peak becomes likely.
The next 6-month low is estimated for May 2020.
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/