Gold has had a good streak after bottoming out at $ 1450 in March. However, prices are coming to great resistance and corrections are likely to be made for several weeks. A decline towards $ 1550 in the coming weeks could be one of the last big buying opportunities.
Gold yesterday hit an intraday high of $ 1,897.70, and prices are a surprising distance of $ 1,923 (the all-time high). Momentum might drive prices up a bit more, but I’d be surprised if they managed to top $ 1923 on the first try. For that reason, I think the advantage may currently be limited.
GOLD WEEKLY TABLE: With gold breaking resistance around $ 1,800, the next logical resistance hits $ 1,923.70 (2011 high). If prices peak here, I will expect a decline towards the $ 1550 – $ 1600 level.
Note: With governments firing up printing presses, it is only a matter of time before gold breaks above $ 2000. We see a strong rebound towards 2023 or early 2024. A decline towards $ 1550 could be one of the last big ones. buying opportunities.
SILVER UPDATE: Silver exploded through resistance around $ 20.00, hitting an intraday high of $ 23.67. There is little technical resistance in this area, and a jump to $ 26.00 is likely before prices take a breather.
PLATINUM UPDATE: Platinum remains a laggard (for now), with prices still below last year’s $ 1046.70 high. At some point, I think prices will play with gold. A rally above $ 1050 would sponsor a breakout to the upside.
GOLD MINERS (GDX): Gold miners have been relatively weak compared to gold, which is testing its all-time high, and silver, which recently broke critical resistance. Their lack of participation suggests that an intermediate level may be close.
A daily finish below $ 40.38 and then $ 39.30 on GDX would sponsor a higher cycle and multi-week correction on miners.
Our gold cycle indicator peaked at 450, there is likely to be a maximum cycle. We remain in the time window for an intermediate peak.
AG Thorson is a registered CMT and expert in technical analysis. He believes that we are in the final stages of a global debt supercycle. For more information, please visit here.
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