Gold reached our March $1700 target exactly and instantly began its decline. Final month I discussed, the subsequent correction in gold might be extreme. I assume that was an understatement. Costs simply breached the earlier 6-month cycle low, and we have now a failed cycle.
THE IDEAL TARGET
Regardless of plummeting costs, gold stays in a structural bull market. Repeatedly a development will come again to check a breakout space. Within the case of gold, that degree is between $1350 and $1380. That is the place I will likely be searching for assist within the coming days/weeks.
In case you lived by means of the 2008 crash, then it is best to know what occurs subsequent. The extreme panic encompassing the globe has sparked large and instant demand for treasured metals. The most important coin vendor in America bought out of silver cash over the weekend. The US mint is out of silver eagles. This kind of investor demand isn’t cured in a single day.
Gold Cycle Indicator
Our proprietary gold cycle indicator peaked final Monday at 412. It reached minimal cycle bottoming and a rating of 85 by Friday’s shut. With gold costs now firmly beneath $1500, the GCI is nearing a rating of zero.
Treasured metals shaped a V-shaped backside in 2008 when every part crashed. I feel we are going to see the identical factor this time. Be affected person and choose your spots – the world is on sale.
AG Thorson is a registered CMT and skilled in technical evaluation. He believes we’re within the closing levels of a world debt super-cycle. For extra info, please go to https://goldpredict.com/
This article was initially posted on FX Empire