Gold Price Forecast – Gold Overturns September Breakdown Supporting Important Bottom

Technical Analysis Expert & Editor @ GoldPredict.com
October 3, 2022

Last week I noted the potential for a repeat of the 2018 bottom. With gold futures back above the September breakdown ($1680), the odds for a significant bottom are growing. 

GOLD WEEKLY CHART

After gold peaked at $1377.50 in 2016, prices consolidated in a sideways ABC correction for 25 months before finally bottoming in 2018. 

I see the potential for a repeat of the 2018 bottom. It's been 25 months since the August 2020 peak at $2089. Gold traced out an expanded ABC correction, and prices could be bottoming as we speak. 

A bottom here would reinforce the potential for a vigorous advance into the next 4-year cycle peak due by mid-2024. 

GOLD DAILY CHART

We have four drops from the March top, similar to the 2020/2021 correction. Gold undercut the $1680 support level, and the last few bulls capitulated. Progressive closes back above the $1680 breakdown level will strongly support a bottom. 

Technical Non-Confirmation: Silver and Platinum never confirmed the September breakdown in gold thus supporting a bottom.

SILVER CHART: Silver has been building a positive MACD divergence since May, and prices never confirmed the September breakdown in gold. We have a swing low, and a robust close above $20.00 would support a bottom. 

PLATINUM CHART: Platinum also stayed above its early September low and never confirmed the breakdown in gold below $1680. Prices need progressive closes above the 200-day MA ($953) to confirm a bottom. 

GDX WEEKLY: Miners (GDX, GDXJ, and SILJ) formed large weekly bullish engulfing candles supporting a potential bottom. 

In closing, I see multiple factors supporting a bottom in precious metals. If gold recaptures and stays above $11700 in October, it might be off to the races. That would be welcome news for gold bugs.

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.

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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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