Key Insights
- Gold bottomed and we could see a breakout to new all-time highs by year-end.
- Below are key prices levels to monitor in Gold, Silver, GDX, and Natural gas over the coming days and weeks.
Gold Futures Daily
- Gold Futures saw a significant 3% increase last Friday, possibly due to short-covering and hedging before the weekend over concerns in the Middle East.
- Prices may pull back for a few days.
- Progressive closes above $1950 would support a near-term breakout.
- The downside level to watch is $1,900; if it holds, then prices can rally, if it breaks, prices could fall back to fill the gap around $1,845.
Silver Futures Daily
- Silver is showing a potential pattern called an “undercut low.” This is when price finds support, breaks below it, reverses, and then heads in the other direction.
- There’s a possibility that this pattern might be emerging in silver, but it remains to be seen. If silver can break above $26.00 in October or November, it would signal a legitimate breakout.
- On the downside, I’m watching $22.00 as a critical level. Progressive closes below $22.00 could indicate that the correction is not over.
Gold Miners GDX Daily
- Gold miners need to hold last week’s gap at $27.70 to support a potential breakout.
- If prices close below $27.70, we could see more downside consolidation.
- A strong move, above the upper trend channel, in would signal the beginning of a stronger move.
Natural Gas (Nat Gas)
- Natural gas is coming back to the $3.00 level, with $2.90 as support.
- If this back test holds, that could pave the way to higher highs and perhaps a retest of $6.00.
Gold Price Forecast Video by AG Thorson
Conclusion
When gold breaks above $2100 (whenever that is), I don’t think it will stop until it touches $3000.
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AG Thorson is a registered CMT and an expert in technical analysis. For regular updates, please visit www.GoldPredict.com.