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Gold Price Forecast – Post Fed Bounce

By:
AG Thorson
Published: Aug 2, 2019, 09:13 UTC

Metals and gold miners are bouncing after yesterday's Fed selloff. The key levels I monitor for direction are the price extremes immediately following their 2:00 PM rate cut announcement.

Gold Price Forecast – Post Fed Bounce

Gold slipped to $1412.10 by this morning and prices are bouncing. The rebound is testing the lower extreme near $1428.50. It would take a sustained move above the upper Fed level ($1444.40) to reverse yesterday’s selloff and support a run to $1500 – $1525.

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Silver slipped to $15.94 before bouncing. Prices would have to rally above $16.30 and then $16.50 to reverse the Fed-day selloff. If accomplished, I’d expect $17.00 – $17.35.

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Gold miners (GDX) are above the lower Fed-day threshold ($26.96) and require a decisive rally above $27.72 to secure a reversal.

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From a cyclical perspective, metals and miners a due for a pullback. The question is – will the pullback be quick and shallow or something more profound lasting a few weeks and cutting deeper. I suspect Friday’s employment report will shed some light…the close is key.

If gold, silver, and miners exceed their upper Fed-day thresholds (described above), then the cyclical pullback could very well be over.


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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