Thursday, December 21, 2017

Gold may have finally bottomed last week as it follows same course as in late 2015 before catapulting higher in price

According to some technical gold analysts, a combination of price consolidation along with much lower short activity in the futures markets may be a strong indicator that the gold price bottomed around the middle of last week.  And in addition to this, the price movement appears to be following the same trend that it took in December of 2015 just before moving up higher beginning in January.

After peaking in 2011 gold entered a prolonged correction. Prices bottomed in 2015 when the FED increased rates for the first time since 2006. Gold prices rallied sharply in 2016 and 2017, but failed to produce a sustained uptrend. The multi-year basing pattern is nearly complete, and gold is poised to break higher in 2018. 
The right side of the pattern is nearly complete. We’ve been looking for a decline to the $1,200 level to complete the symmetrical base. However, prices may have bottomed prematurely at $1,238.30. We should know where we stand sometime next week. 
If the dollar confirms a bear market, as expected, gold should test the $1,923 high by 2019/2020. Our long-term forecast anticipates a breakout above $2,000 and fresh all-time highs as the dollar sinks into the next 16-year low (2024). – Gold Eagle

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