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Gold Forecast – Expecting a Bottom in Gold this Week – FX Empire

Gold is below the November low, and our Gold Cycle Indicator reached its maximum bullish reading of ZERO (0). The conditions are ripe for a bottom, in our opinion.

The uptrends in silver and platinum remain strong, and prices continue to lead gold. I see the potential for a breakout and sharp advance over the coming weeks in both these metals.

Several gold miners are back to pre-Covid price levels. I view this as an excellent long-term opportunity and believe we will look back at today’s prices as a gift.

The Gold Cycle Indicator finished the week at ZERO (0), our maximum bullish reading.

GOLD MONTHLY: Gold is within striking distance of the 20-Month moving average ($1697) after confirming a Bull Market Breakout in 2019. When gold is in a bull market, buying a tag of the 20-month MA is usually a good long-term opportunity. I believe this time is no different.

GOLD DAILY: This week I’ll be on the lookout for signs of a bottom in gold if/when prices reach the lower intermediate trend channel (currently crossing $1685) or near the post-Covid congestion boundary encompassing $1675. Essentially, I’m looking for a bottom this week between $1665 and $1685. A temporary spike below support remains possible.

SILVER FORECAST: After lagging gold for years, silver is finally leading prices higher. I’ve been expecting this, and it is a very bullish sign, in my opinion.

Near-Term Outlook – Silver is consolidating in what I believe is a rounded continuation pattern. Prices could dip down towards $24.00 to maintain pattern symmetry. Ultimately, I expect a breakout above $30.00. It would take a sustained breakdown below $22.00 (the rounded bottom low) to invalidate the pattern and promote a more extended consolidation period.

GDX BREAKOUT BACKTEST: Gold miners broke out from a 7-year base in 2020. Prices are backtesting that breakout area now, and I believe we could be approaching a critical low.

Note- If I’m correct and precious metals have started a new multi-year bull market, then this might be the last time we see GDX near $30.00 for a very long time.

The time to be greedy is when others are fearful; I think we are almost there in gold.

I’ll be looking for leading price action from silver and platinum to signal a bottom and the next rally.

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 regular updates, please visit here.

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