U.S. markets closed
  • S&P 500

    4,471.37
    +33.11 (+0.75%)
     
  • Dow 30

    35,294.76
    +382.20 (+1.09%)
     
  • Nasdaq

    14,897.34
    +73.91 (+0.50%)
     
  • Russell 2000

    2,265.65
    -8.52 (-0.37%)
     
  • Crude Oil

    82.66
    +1.35 (+1.66%)
     
  • Gold

    1,768.10
    -29.80 (-1.66%)
     
  • Silver

    23.35
    -0.13 (-0.54%)
     
  • EUR/USD

    1.1606
    +0.0005 (+0.05%)
     
  • 10-Yr Bond

    1.5760
    +0.0570 (+3.75%)
     
  • GBP/USD

    1.3751
    +0.0074 (+0.54%)
     
  • USD/JPY

    114.2000
    +0.5230 (+0.46%)
     
  • BTC-USD

    61,097.30
    -468.69 (-0.76%)
     
  • CMC Crypto 200

    1,464.06
    +57.32 (+4.07%)
     
  • FTSE 100

    7,234.03
    +26.32 (+0.37%)
     
  • Nikkei 225

    29,068.63
    +517.70 (+1.81%)
     

Gold Price Forecast – Are Gold Miners Signaling a Breakout in Precious Metals

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

A sustained breakout in gold miners could signal a major bottom in precious metals, in our opinion.

-GDX DAILY CHART- Technically, miners are back above the critical breakdown level of $31.00, supporting the potential for a bullish undercut low or bear trap. A sustained breakout back above the 200-day MA could signal the beginning of the next leg higher.

GDX LONG TERM: The weekly chart of GDX illustrates the significance of the $31.00 price level. It took GDX seven years (2013 to 2020) to breakout above $31.00. After the post-Covid spike, prices extended too far too fast and have been correcting. Recently, GDX broke below $31.00, but that breakdown was fleeting (possibly a bear trap). Prices have since recaptured the $31.00 support level, and I see the potential for a significant bottom if prices maintain $31.00.

-BARRICK GOLD- One factor supporting the potential for a significant bottom is the 3-year cycle in Barrick. It seems every third September (2012, 2015, 2018, 2021?), Barrick reverses the recent price trend. In this case, prices may have formed a significant bottom in September 2021.

GOLD FUTURES DAILY: The intermediate gold cycle bottomed in early August. A breakout above the 12-month downtrend line could signal the next leg higher in precious metals. Until gold futures clear $1900 to $1925, precious metals remain vulnerable to more sideways consolidation.

Our long-term stance remains firmly bullish on the yellow metal and believes gold will reach $7,500 to $10,000 in USD terms by the end of this decade.

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.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

More From FXEMPIRE: