Gold Forecast: Gold Makes All Time High Expecting Bank Failures

Technical Analysis Expert & Editor @ GoldPredict.com
March 8, 2024

fine gold

The next big surge in gold has started, and sub-$2000 pricing may be a thing of the past.

A $1 billion capital injection saved New York Community Bancorp mid-week; was that enough to arrest its decline? 

Lagarde signals the ECB may cut rates in June, and Powell emphasizes cuts "at some point this year."

Banking Crisis Update

  • Monday will mark the one-year anniversary of last year's banking crisis and collapse of SVB.
  • This year New York Community Bank is center stage with a deeply underwater (rent controlled) loan book.
  • Wednesday's panic ceased, for now, but if deposits flee (bank run), NYCB could be in deep trouble next week.

NYCB DAILY

New York Community Bancorp (NYCB) was down 45% intraday Wednesday as trading halted pending news. Thirty minutes earlier, NYCB announced it was seeking capital to shore up its balance sheet.

A $1 billion rescue package was announced around 2:30 PM, and prices rallied into the close. According to banking expert Chris Whalen, the $1 billion capital injection is likely insufficient, and a number closer to $10 billion is needed.

Precious Metals & Mining Update

GOLD WEEKLY- Unless something dramatically changes, we have a weekly breakout in gold. A 50% rally succeeded a similar breakout in 2019.

GOLD DAILY- Gold is finally breaking above $2100, and I believe we are in the initial stages of a powerful multi-month rally.

Expect increased volatility and gut-wrenching corrections along the way. This cycle should press to the upside into late April or early May.

SILVER- Silver often lags gold at the beginning of a cycle and plays catchup towards the end. Consequently, the real fireworks may start in April. Getting above $26.00 is essential.

PLATINUM— We have progressive closes above the 50-day EMA and a cycle bottom. Next, prices must conquer the $1000 level to ignite more upside.

AU- Anglogold Ashanti has broken free from its rounded bottom, supporting a breakout across gold miners.

GDX-Gold miners have gapped higher for six consecutive opens. We have a cycle low, but prices must transcend $32.50 to attract more upside.

GDXJ- The level to beat in juniors is $40.00. Once we clear that, things could get exciting.

SILJ- Silver juniors need to best the $10.60 level to confirm a critical breakout.

S&P 500- Stocks made a new closing high, quickly reversing Tuesday's gap. The market continues unabated, and the trend is deeply overbought.

Conclusion

The next big surge in gold has started, and sub-$2000 pricing may be a thing of the past. Gold miners are stupid cheap and should play catch up in the coming months. 

AG Thorson is a registered CMT and an expert in technical analysis. For daily market updates, consider subscribing www.GoldPredict.com.

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AG Thorson is a registered CMT through the MTA and an recognized expert in technical analysis of the precious metals markets. He is also the Editor of GoldPredict.com where 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 [email protected].


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