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Gold Price Forecast – Gold Prices Hit $1700 Target, Now What?

By:
AG Thorson
Published: Mar 9, 2020, 16:11 UTC

Our forecast was met with opposition, as gold was trading around $1550 at the time. Our analysis proved correct as gold struck $1704.30 earlier today. So, what’s next for the yellow metal?

Gold Price Forecast – Gold Prices Hit $1700 Target, Now What?

Back in January, we laid out a path for gold to reach $1700+ in March. Our forecast was met with opposition, as gold was trading around $1550 at the time. Our analysis proved correct as gold struck $1704.30 earlier today. So, what’s next for the yellow metal?

Our system works off the 6-month cycle in gold. Not a lot of people realize this, but approximately every 6-months gold drops into an intermediate low. These lows typically provide an excellent medium-term entry in precious metals (silver and miners also follow this cycle).

Below is the gold chart from our January 17th post: Expect $1700+ After a Brief Pause. The previous 6-month low bottomed in November at $1446.20. In this article, I noted the MACD was crossing over and how that often signals a low. It proved timely as gold just bottomed at $1536.40.

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Gold Cycle Peaking

Gold is 4-months into a 6-month cycle, and prices are likely peaking. Our proprietary Gold Cycle Indicator (GCI) entered Maximum Topping. Reaching “Maximum Topping” doesn’t mean prices will peak immediately. It merely suggests the 6-month cycle is approaching maturity, and we should start planning for a top and the next buying opportunity.

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In summary, gold met our March $1700 target, and the 6-month cycle is mature. However, prices could extend a bit higher, given today’s volatility. Nevertheless, intermediate-term traders should consider taking profits at this time.

The next 6-month low should arrive in late April to early May. Gold may succumb to the current market forces and decline further than most expect. That decline will set up the next great buying opportunity in precious metals.

Our Cycle Trade System is in cash and anxiously awaiting the next GCI buy signal.

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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