Gold Price Forecast – Potential Breakout Alert

In late September, I wrote the final washout in metals and miners is underway. Prices bottomed a few days later, and a new rally is starting. We believe gold could breakout above $2100 before year-end.

Daily Gold Futures

• The final washout is likely over and progressive closes above the trendline would support a bullish breakout.
• The pivot highs between $1960 and $1980, could pose a challenge. A daily close below $1940 would signal that the trend may not be ready to break out.

Daily Silver Futures

• Silver, on the other hand, is holding its ground above the $22.00.
• To gain more confidence in the silver market’s strength, I’m looking for consecutive closes above $23.50. On the flip side, I consider $22.00 as a vital support level that must hold.

GDX Monthly Chart

• As I assess gold miners via GDX, I can’t help but wonder if we are on the verge of an important breakout.
• Stepping back for a broader perspective, the monthly chart of GDX reveals the potential formation of a massive bullish engulfing candle. This would occur if the monthly candle finished well above the prior open at $29.66.

A candle of this nature could signify a significant market bottom and the potential for a substantial breakout. Interestingly, the last time such a monthly bullish engulfing candle emerged was in April 2020, coinciding with a period of peak fear and uncertainty.

10-Year Treasury Yield

• I can’t shake off my concerns about the 10-year Treasury yield. There’s a nagging worry that we might witness a spike above 5%. Such a spike could pose a substantial risk to the markets.

Gold Price Forecast Video by AG Thorson

Conclusion

The final washout in metals and miners appears complete, and we may be in the beginning stages of a substantial advance. When gold breaks above $2100, I don’t think it will stop until it approaches $3000. Gold miners could soar.

AG Thorson is a registered CMT and an expert in technical analysis. For regular updates, please visit www.GoldPredict.com.