Market Crash Update – Gold Spikes To $1700 Target as Treasury Yields Plummet

Gold continues toward our March $1700 target as stocks and Treasury yields plummet.

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 397 and is near maximum topping as I write. What does this mean? It means the 6-month cycle in gold is approaching maturity, and we should start preparing for a top. If gold is unable to break through $1690, we may have to consider the potential for a double top.

Intermediate Target

Below is the gold chart from our February 23^rd 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.

Over the years, I’ve noticed gold likes to change trend in the opening days of a new month – often around the non-farm payroll numbers. With our cycle indicator approaching 400, I’ll be monitoring Friday’s price action closely.

Once this 6-month cycle peaks, we won’t expect the next significant buying opportunity in precious metals until late April or early May.

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/