Gold Price Forecast: Correction Appears Near Completion
Precious metals and mining stocks are showing signs of bottoming near our mid-year target zones.
On Wednesday, our Gold Cycle Indicator registered a reading of 33—its lowest level since October 2023, when gold was trading just above $1,800.
Although a 1–2 week rebound remains possible before a final decline into month-end, waiting for one last low can sometimes result in missing the bottom altogether.
The Gold Cycle Indicator finished at 51. Wednesday it was in maximum cycle bottoming, a relatively rare occurrence.
GOLD: Gold is showing subtle signs of bottoming after testing its March low. The Gold Cycle Indicator closed at 33 Wednesday, its lowest reading since October 2023, so we are deeply oversold. Gold is rebounding after President Trump softened his stance following comments that the U.S. would hit Iran "VERY HARD." I would need to see progressive closes above the 50-day EMA to confirm a bottom. A brief rebound, followed by a final low closer to month-end, remains a possibility.
SILVER: Silver quickly recovered its 200-day moving average, suggesting prices may be forming a bottom. To confirm a low, I would need to see a series of progressively higher closes above the 50-day EMA. Until then, the potential for a final low closer to month-end remains a possibility.
PLATINUM: Platinum formed a swing low, and prices may be working on a potential bottom. Prices need to get back above $1,900 to support a low.
GDX: Miners immediately closed Wednesday's price gap (potential exhaustion gap), supporting the potential for a bottom. The next gap to close is around the 200-day MA near $86.00.
GDXJ: Juniors quickly filled the recent gap, further supporting the potential for a bottom to form. The positive momentum divergence in the MACD is also encouraging. However, prices would need to move decisively back above the gap near $112.50 to confirm that a bottom is in place.
SILJ: Silver juniors reversed Wednesday’s potential exhaustion gap, supporting the possibility of a bottom. Progressive closes above the 50-day EMA are needed to establish an intermediate low.
BTCUSD: Bitcoin is consolidating in a small pennant formation after testing the February low. A sustained move above $65,000 would signal further upside, while a drop below $59,000 could open the door toward $50,000.
Closing Thoughts
Precious metals and mining stocks are showing signs of bottoming near our mid-year target zones. While some additional downside remains possible, I believe the correction that began in January is approximately 90% complete.
Attempting to identify the exact bottom often results in missing a significant portion of the subsequent advance. We remain strongly convinced that precious metals and mining stocks will be substantially higher one to two years from now, making current levels an attractive opportunity for patient investors.
AG Thorson is a registered CMT and an expert in technical analysis. For more price predictions and daily market commentary, consider subscribing at www.GoldPredict.com.
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