Gold Price Forecast: Are Gold Miners Signaling a Potential Breakout

Technical Analysis Expert & Editor @ GoldPredict.com
October 14, 2021

gold barsGold miners are surging over persistently high inflation data. Perhaps investors are beginning to question the transitory inflation claims of the Fed. A sustained breakout in gold miners could signal a major bottom in precious metals, in our opinion.

GDX Daily Chart

Technically, miners are back above the critical breakdown level of $31.00, supporting the potential for a bullish undercut low or bear trap. A sustained breakout back above the 200-day MA could signal the beginning of the next leg higher.

GDX Long Term

The weekly chart of GDX illustrates the significance of the $31.00 price level. It took GDX seven years (2013 to 2020) to breakout above $31.00. After the post-Covid spike, prices extended too far too fast and have been correcting. Recently, GDX broke below $31.00, but that breakdown was fleeting (possibly a bear trap). Prices have since recaptured the $31.00 support level, and I see the potential for a significant bottom if prices maintain $31.00.

Barrick Gold

One factor supporting the potential for a significant bottom is the 3-year cycle in Barrick. It seems every third September (2012, 2015, 2018, 2021?), Barrick reverses the recent price trend. In this case, prices may have formed a significant bottom in September 2021.

Gold Futures Daily

The intermediate gold cycle bottomed in early August. A breakout above the 12-month downtrend line could signal the next leg higher in precious metals. Until gold futures clear $1900 to $1925, precious metals remain vulnerable to more sideways consolidation.

Our long-term stance remains firmly bullish on the yellow metal and believes gold will reach $7,500 to $10,000 in USD terms by the end of this decade.

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].

Gold was first discovered in U.S. at the Reed farm in North Carolina in 1799, a 17-pound nugget.

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