Gold Price Forecast – The Next Leg Higher is About to Begin, Watch SilverFor a few weeks, I’ve advised readers that the current pullback is nothing more than a healthy mid-cycle consolidation. That once concluded, metals and miners would continue higher into March. The correction period is ending, and the next leg higher is about to begin. We see explosive potential in silver.
For a few weeks, I’ve advised readers that the current pullback is nothing more than a healthy mid-cycle consolidation. That once concluded, metals and miners would continue higher into March. The correction period is ending, and the next leg higher is about to begin. We see explosive potential in silver.
A Simple Consolidation
Mid-Cycle consolidations are usually dull, and this one’s no exception. Similar in depth and scope to the late June correction of 2019. The current low arrived at $1536.40, and prices are slowly working their way higher. The trend is likely to accelerate higher after next Wednesday’s Fed announcement.
Overall, we expect gold to rally into March and likely test $1700 or higher before finally rolling over. The next 6-month low should arrive in late May to early June depending on where prices peak.
Explosive Potential in Silver
Silver has underperformed gold for a while; prices remain below the $21.25 high set in 2016. That may be getting ready to change. We got a glimpse of silvers explosiveness last July when prices rallied from $14.91 to $19.75 in 2-months. The current cycle is in a similar setup, and with some speculative buying interest, silver could shoot past $20.00 and exceed the $21.25 high.
-GDXJ- The rounded bottom consolidation in junior miners is nearing completion. A breakout above $43.00 will signal the next advance to $50.00+. Juniors should outperform their senior counterpart if silver pops to fresh highs as expected.
The mid-cycle consolidations in metals and miners are about over. Are you prepared for the next leg higher?
Our Cycle Trade System (CTS) is long NUGT and aggressively long USLV.
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/