Gold Price Forecast: Gold Confirms a Double Bottom as Crypto Collapses

Technical Analysis Expert & Editor @ GoldPredict.com
November 11, 2022

Gold confirmed a bullish breakout after Thursday’s inflation report. After months of disappointment, gold bugs can breathe a sigh of relief.

Inflation Data 

The Core Inflation rate fell to 6.3% in October and was below the 6.5% estimate. However, it remains high and above the Fed's 2.0% target. Nevertheless, markets soared on the news inferring the Fed could take a softer approach with rate hikes. 

source: https://tradingeconomics.com/united-states/core-inflation-rate

Precious Metals

With inflation showing signs of peaking, it's expected the Fed will step down and eventually pause their rate hiking campaign. Precious metals have been like a coiled spring waiting for this moment. Gold soared upon the news and confirmed a breakout.

Gold's Big Picture 

The big picture in gold supports a crucial bottom in 2022, similar to what we witnessed in 2018. I expect prices to work their way higher over the next several months. Sometime next year, we should see a sustained breakout above $2000, followed by a strong rally into the 2024 peak. Target wise: I still like $3000 (+/- $200). 

Gold's Double Bottom

While the big-picture outlook for gold mimics the 2018 low, the intermediate-term trend echoes the double bottom of 2021. With a confirmed breakout, I expect gold to work its way back above the 200-day MA in the coming days/weeks. Expect occasional pullbacks, while the overall trend should be higher. Our work supports a breakout above $2000 in the second half of 2023. 

Crypto Collapse

On a side note, Crypto is in deep trouble again as Crypto exchange FTX and many of its affiliated companies filed for Chapter 11 bankruptcy on Friday, with FTX Founder Sam Bankman-Fried stepping down as CEO. Just in August, Sam Bankman-Fried (SBF) was touted as the next Warren Buffett? I Guess not…

Source: https://twitter.com/buccocapital/status/1590018513577848832

Final Thoughts

With inflation peaking, the Fed waning and crypto imploding – gold appears to have finally bottomed. I’m looking forward to a very strong advance in precious metals in 2023 and 2024. Watch silver and platinum closely.

AG Thorson is a registered CMT and an expert in technical analysis. He believes we are in the final stages of a global debt super-cycle. For more charts and 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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