Gold Price Forecast – Prices Likely Topped Last Week

Gold prices spiked to $1691.70 and just shy of our $1700 target before succumbing to last week’s market meltdown. The next buying opportunity should arrive in April or May.

Since mid-January, our call was for the 6-month cycle to peak around the $1700 level in early to mid-March. It appears gold peaked a week or two early but within our $1685 – $1730 price range.

Next, we will likely see some consolidation in precious metals digest yesterday’s emergency Fed rate cut and the growing economic concerns over the coronavirus.

Market Meltdown

I noted the potential for a stock market breakdown in our February 23rd Weekend Newsletter – “The MACD is diverging negatively, and I see the potential for a correction, possibly severe.” Shockingly, prices crashed (see chart below) and reached our target the very next week. Usually, these events take several weeks.

In summary, gold is likely heading into the next 6-month cycle low. The commercial traders represented in the Commitment of Traders (COT) have massive shorts that need to be unwound, so it’s possible gold corrects deeper than most expect. Also, this year’s presidential election will be a significant driving force, likely adding to volatility. Long-term, we believe gold is going much higher, so any opportunity to buy near the 200-day MA is a gift.

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/