Gold is surging to fresh highs after confirming its recent 6-month low. Prices have rallied over $100 since Christmas. The short-term trend is overbought and due for a pullback.
I’ve explained before how gold forms intermediate lows approximately every 6-months. The previous cycle peaked in September, and prices entered a prolonged cycle correction. The Christmas eve rally above $1492 confirmed a November 6-month low, and the next advance is underway.
The trend in silver usually starts slow but finishes strong when compared to gold. If you feel like you missed the 6-month low(s) in gold and miners, then you may want to consider silver – its trend is just getting started. Prices could pullback a little here if/when gold takes a breather. I see support between $17.40 and $17.70.
Overall, metals and miners are climbing their way out of fresh 6-month lows. The path is never straight up, so expect a pullback here or there. This 6-month series should continue into February or March before rolling over and declining into the next intermediate low.
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/
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 that will begin to unravel in 2020.