Gold Price Forecast: A Top Becoming Likely

Wednesday, August 14, 2019

gold bars

Gold and silver prices are forming outside reversals as I write, and an interim top is possible. Longer-term, we believe the gold bull market is just getting started and should last well into the next decade. A multi-week correction in metals and miners from this level would yield attractive buying opportunities.

Gold Bull Market

Gold confirmed a new bull market when prices broke free from the 6-year base in June 2019. The post-breakout rally entered significant resistance between $1525 - $1550. With commercial shorts near record highs, a near-term top is supported followed by a multi-week correction. A pullback towards $1380 would present an attractive buying opportunity.

GDX Daily Chart

Miners closed lower on Monday as gold rallied to fresh highs. That non-confirmation delivered a timely warning; I think miners sensed a top. The MACD has been diverging since July and momentum collapsed into the $30.00 high. A daily close below $28.00 would secure a top. Ideal support arrives between $23.50 - $24.00.

I see the potential for quality buy setups in several miners if prices correct from current levels. One stock I'll be watching CDE. A correction back towards $4.00 would set the stage for a large inverse head and shoulder bottom.

CDE Daily Chart

A pullback to fill the June gap near $3.75 could setup a near-perfect head and shoulder bottom. If verified, a breakout above the neckline ($5.75) would recommend an initial target of $8.00 with the potential to reach $12.00+ in 2020.

After an 8-year bear market, precious metals are finally beginning to shine. Silver and platinum remain undervalued and should start to play catch. With one-third of Sovereign debt yielding negative returns, more and more investors will turn to the safety of hard assets.

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AG Thornson

AG is an accredited CMT through the MTA and the editor of GoldPredict.com. His members receive daily updates and regularly scheduled reports 3-days a week. He prides himself on making his analysis easy to understand through the use of adaptive and creative charting methods. You can reach AG at info@GoldPredict.com.