Gold Price Forecast - Expect New Highs After a Brief Pullback

Technical Analysis Expert & Editor @ GoldPredict.com
February 3, 2023

gold major bottomGold is getting slammed after Friday's robust jobs report

  • January non-farm payrolls showed 517,000 jobs created versus the expected 190,000. And unemployment fell to 3.4% from 3.5%.
  • The bullish surprise implies the Fed will have to keep hiking rates beyond March. 

Gold Big Picture Review 

We believe gold formed a major bottom in 2022, and prices are in the first phase of a multi-wave advance towards $3000 in 2024. The next 4-year cycle should peak ahead of the 2024 Presidential elections. 

The Presidential Election Cycle 

The main reason gold spikes every 4-years is because of political uncertainty and social unrest. Each side fears the other winning. The greater the tension between parties - the higher gold will climb. It is anyone's guess who the 2024 candidates will be, but it's bound to be controversial. 

Gold Short-Term Overbought

  • Gold is short-term overbought, and a pullback below $1900 is conceivable. 
  • On the bullish side: progressive closes above $2000 would support a breakout and retest of $2080.

If gold keeps dropping from here, I'd expect prices to find support between $1820 and $1860. 

Our analysis shows that a breakout above $2100 is possible by July or August 2023. 

Conclusion

We believe gold is in the second inning of a nine-inning advance that should take prices to new all-time highs in 2024. Precious metals remain under-owned, and pullbacks could be mild to moderate in 2023. Expect a spike in 2024 ahead of the presidential elections. 

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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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