Gold Price Forecast – Prices Grapple With $1550

Gold is testing the 2013 bear market inflection point at $1550. The trend appears to be slowing after rallying $300 since May. Silver has taken the torch and is leading gold higher; that often occurs towards the end of an intermediate cycle advance.
AG Thorson
Gold and Silver bars

Gold is testing the 2013 bear market inflection point at $1550. The trend appears to be slowing after rallying $300 since May. Silver has taken the torch and is leading gold higher; that often occurs towards the end of an intermediate cycle advance.

Gold is testing the 2013 bear market inflection point at $1550. The trend appears to be slowing after rallying $300 since May. Silver has taken the torch and is leading gold higher; that often occurs towards the end of an intermediate cycle advance.

Near-term, gold futures would have to close below $1535 to flag a potential top. A subsequent breakdown below $1500 would validate a cyclical high and the beginning of a multi-week correction.

Technical Picture

GOLD DAILY CHART- Prices formed a clear reversal candle on Monday after spiking to $1565. Futures held support at $1535, and there was no bearish follow-through. To support a terminal spike high, gold needs to close below $1535 then break support at $1500.

SILVER DAILY CHART- After a mid-August consolidation, silver broke sharply higher above $18.00. Prices are now leading gold. The next level of resistance arrives between $18.30 – $18.65. As long as gold remains below Monday’s $1565 high, the move in silver is vulnerable.

SLV:GLD RATIO- As prices approach cyclical turning points, I often refer back to the ratio charts for clues. The recent rally in silver propelled the ratio back to the bearish trendline. It’s make or break time for silver. A failure here would support a multi-week pullback in precious metals.

The trends in precious metals are undoubtedly stretched, and a correction is justified. A daily close in gold futures below $1535 would support a potential top. Intermediate traders should consider taking profits on longs — no sense in being greedy.

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 here.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US