Chat with us, powered by LiveChat
Menu

Gold Could Be On Track To Reach $3000! Here’s Why

Gold $3000
Print Friendly, PDF & Email

EDITOR NOTE: The recent pullback in gold might have frightened a number of investors, but only if they’re looking at the short-term price action. If you zoom out to the weekly scale, which is more or less the domain of longer-term fund managers, you’re probably going to see a recognizable pattern that’s popular among the stock investing crowd. It’s called a “cup and handle” pattern (because it resembles just that, a cup with a handle). This pattern shows a large curved dip (the “cup” portion), indicating selling and accumulation, and a much smaller dip (the handle) indicating that buyers are jumping in to prevent price from moving lower. Right now, we're at the “handle” portion of the pattern. It may take a few weeks, but the pattern predicts that gold isn’t going to move much lower from here and is poised to shoot upwards, the author setting a price target of $3,000 per ounce. In short, if you wanted to accumulate or add to your gold positions--non-CUSIP gold coins or bars being our preference for matters of privacy and accessibility--then you have a very short time frame in which to buy gold before its price moves higher.

In the spring of 2020, I highlighted the potential for a very bullish long-term pattern for Gold.

That pattern was the popular “cup with handle” formation. At that time, it was still attempting to fill out the right side of the “cup” formation.

Today, we take another look at the “monthly” chart of gold and get an update on that pattern.

Gold “Cup With Handle” Formation

Eyes $3000 Price Target?

As you can see in today’s chart, Gold has completed the “cup” pattern and is currently pulling back into what could be the “handle” part of the formation. Ideally, Gold bulls want to see a decline down to the $1550-$1600 level before another big rally begins.

As we noted back in the spring of 2020, the Fibonacci symmetry of this cup formation is very intriguing. Gold peaked at its 261% Fibonacci extension price level in 2011 at (1) and again in 2020 at (2) – this formed the “cup”. And a pullback into the 38.2% Fibonacci of the “cup” formation would be an ideal spot for the “handle” to form.

Does Gold need to form a “handle” before moving higher? Not necessarily… but it sure would help Gold get to $3000 a lot sooner. Stay tuned!

This chart was written for See It Markets.com. To see the original post, CLICK HERE.

Originally posted on Kimble Charting Solutions

book-image-bank-failure

GET YOUR FREE

BANK FAILURE SURVIVAL GUIDE

  • This field is for validation purposes and should be left unchanged.

All articles are provided as a third party analysis and do not necessarily reflect the explicit views of GSI Exchange and should not be construed as financial advice.

Precious Metals and Currency Data Powered by nFusion Solutions