Gold Price Forecast – Worst Case Scenario Confirmed

Gold reached our March $1700 target precisely and immediately started its decline. Last month I mentioned, the next correction in gold could be severe. I guess that was an understatement. Prices just breached the previous 6-month cycle low, and we have a failed cycle.

THE IDEAL TARGET

Despite plummeting prices, gold remains in a structural bull market. Regularly a trend will come back to test a breakout area. In the case of gold, that level is between $1350 and $1380. This is where I will be looking for support in the coming days/weeks.

If you lived through the 2008 crash, then you should know what happens next. The severe panic encompassing the globe has sparked massive and immediate demand for precious metals. The largest coin dealer in America sold out of silver coins over the weekend. The US mint is out of silver eagles. This type of investor demand isn’t cured overnight.

Gold Cycle Indicator

Our proprietary gold cycle indicator peaked last Monday at 412. It reached minimum cycle bottoming and a score of 85 by Friday’s close. With gold prices now firmly below $1500, the GCI is nearing a score of zero.

Precious metals formed a V-shaped bottom in 2008 when everything crashed. I think we will see the same thing this time. Be patient and pick your spots – the world is on sale.

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/