Gold Price Forecast: Pullback Continues into Mid-September
Metals and miners bottomed mid-year and are undergoing a standard pullback before resuming their uptrends.
Friday’s better-than-expected employment report will likely extend recent weakness, with the decline potentially accelerating if next week’s CPI print comes in hotter than expected.
I outline preliminary support levels below. I’m particularly intrigued by the bullish setups developing in gold and silver miners, as I believe they are positioned to outperform into next year.
GOLD: Gold bottomed mid-year, as forecasted, and prices are undergoing a mid-cycle correction. Friday’s better-than-expected payroll numbers will likely keep downside pressure on metals, which could intensify if next week’s CPI print comes in hotter than expected. Ideal support for this pullback is around $4,150 (+/- $50).
SILVER: Silver bottomed in July within our target box, and prices are now undergoing a standard 1–2 week pullback. Look for support around $60.00, although a brief dip below that level is possible if CPI comes in well above expectations.
PLATINUM: Platinum is poised to dip to support between $1,650 and $1,700 as we head into the September 16 Fed announcement. Once the correction is complete, the uptrend should resume, with new all-time highs expected next year.
GDX: Miners are setting up for a textbook three-wave pullback into key support at the crossover of the 50- and 200-day moving averages, just above $90.00. We expect miners to make new all-time highs well ahead of gold, continuing to lead the metals complex higher from here.
GDXJ: Junior gold miners have a similarly bullish setup, with prices pulling back toward key support at the crossover of the 50- and 200-day moving averages.
SILJ: Silver juniors could test support around $29.00 (+/- $1.00) to complete this pullback into mid-month. They, too, should reach new all-time highs well ahead of silver, as they are expected to outperform going forward.
BITCOIN: Bitcoin surged 25% in August, surprising the bears. Near-term prices may have reached an interim cycle peak on September 3rd. A close below $75,000 would support renewed weakness into mid-November, potentially pushing prices to fresh lows before the four-year cycle officially bottoms in Q4.
Conclusion
After a 6-month correction, the uptrend in precious metals is resuming. Prices will likely correct a bit further into the September 16th Fed announcement, with target levels subject to change as new information emerges, particularly next week’s CPI report.
Overall, we view this as a brief pullback within a larger uptrend. We expect new all-time highs next year, with gold potentially targeting $7,000+. For more price predictions and daily market commentary, consider subscribing at www.GoldPredict.com.
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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