Gold Price Forecast: Critical Levels for Gold & the Dollar

August 4, 2020
Technical Analysis Expert & Editor @ GoldPredict.com

I see the potential for a spike high in gold this week. The days surrounding Friday's employment report are crucial. If the dollar bottoms around 92, that could trigger a multi-week correction in gold, potentially severe.

The US dollar spiked to 103.96 during the March liquidation. Prices are down over 10% from that peak; the trend is very oversold. An interim bottom is becoming likely, followed by a 1 to 3-month consolidation.

Near-Term Levels for The Dollar

Confirmed Bottom: Progressive closes above 94.00 would confirm a cycle low and potential multi-week pullback in precious metals. 

Continued Breakdown: A continued breakdown below 92 could trigger a waterfall decline into October. In this scenario, gold would likely extend above $2100 and enter a parabolic rise.  

SUPPORTING EVIDENCE: In the past, a dip below 20 in the daily RSI (14) characterized an interim cycle low. The reading reached 18.61 Thursday, July 30, 2020. The odds for a potential bottom in the Dollar and temporary spike high in gold are significant within the next several days. 

GOLD NEAR-TERM PRICE LEVELS

Parabolic Rally: A waterfall decline in the Dollar could trigger a sharp rise). Progressive closes above $2100 would establish this scenario. 

Temporary Top: A spike above $2000 could trigger a quick, but unstained rally (spike-high) in gold above $2000 this week.

Be cautious. I see the potential for increased volatility this week.

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 more information, please visit here.

*********

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 info@GoldPredict.com.

Gold weighs 19.3 times as much as an equal volume of water.

Gold Eagle twitter                Like Gold Eagle on Facebook