Gold Price Forecast – The Next Great Buying OpportunityGold is finishing the week lower as trade negotiations between the US and China advance.
This week’s breakdown suggests gold is entering the final stage of the intermediate decline that began in September. Our primary forecast calls for a bottom by late November or early December.
In my article, Look for a November Breakdown, I stated: “I think gold may be set up to pull the rug out from under investors.” That turned out to be timely – after some post-Fed deliberation, gold formed a secondary high on November 1st, and prices immediately began to break lower.
Below is the chart posted on November 1st, depicting the potential for a top and subsequent decline. The 6-month target remains valid.
The $1380 – $1420 area makes the most sense and covers the 50% – 61.8% retracement levels of the previous advance. However, I can’t rule out a backtest of the $1360 breakout level. Concerning timing, trend changes (bottoms/tops) often occur in the opening days of a new month – so early December is favored.
Gold Cycle Indicator
Our proprietary cycle indicator slipped below 200 for the first time since May 2019. A reading below 100 (currently 159) suggests gold is entering the bottoming phase of its 6-month cycle.
Overall, I believe gold is in a new bull market, and prices are heading much higher. The next 6-month low may become one of the last great buying opportunities.
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/