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Friday, May 20, 2022 9:45:21 AM
Gold Prices Show Signs of Bottoming
By: AG Thorson | May 20, 2022
• Gold plunged nearly $300 since March, and miners performed even worse. Over the past 2-years, gold has gone nowhere. Is the bull market dead?
Gold bugs will be happy to know the 5-year chart suggests a simple pause before new highs (see below).
Metals and miners could drop further over systemic market risk, but the technicals are starting to support a bottom.
Gold Price Forecast
Gold 5-Year daily chart
The cup-with-handle pattern looks complete. Prices fell deeper than anticipated, but I’m beginning to see signs of a bottom. I continue to expect a breakout above $2000 in the coming months; probably when the Fed pivots.
Gold daily chart
The close-up of the handle formation shows gold dipping briefly below the 200-day MA. Prices closed back above it Thursday, and I see the potential for a bottom if we see a strong finish above $1850.
Silver and Miners Analysis
Silver daily chart
Silver must get back above $22.50 to consider a cycle low.
GDX daily chart
Miners managed to close above last week’s gap ($31.70). Prices may have reached a cycle low. Prices remain vulnerable to sharp dips and general market risk.
GDXJ daily chart
Juniors bounced sharply, supporting a possible low. A close above the gap near $41.50 is the next step in confirming a bottom.
Word of Caution: Markets are likely to remain volatile through 2022. Whatever happens today could swiftly reverse tomorrow. Try not to read too much into one week’s price action.
Read Full Story »»»
DiscoverGold
By: AG Thorson | May 20, 2022
• Gold plunged nearly $300 since March, and miners performed even worse. Over the past 2-years, gold has gone nowhere. Is the bull market dead?
Gold bugs will be happy to know the 5-year chart suggests a simple pause before new highs (see below).
Metals and miners could drop further over systemic market risk, but the technicals are starting to support a bottom.
Gold Price Forecast
Gold 5-Year daily chart
The cup-with-handle pattern looks complete. Prices fell deeper than anticipated, but I’m beginning to see signs of a bottom. I continue to expect a breakout above $2000 in the coming months; probably when the Fed pivots.
Gold daily chart
The close-up of the handle formation shows gold dipping briefly below the 200-day MA. Prices closed back above it Thursday, and I see the potential for a bottom if we see a strong finish above $1850.
Silver and Miners Analysis
Silver daily chart
Silver must get back above $22.50 to consider a cycle low.
GDX daily chart
Miners managed to close above last week’s gap ($31.70). Prices may have reached a cycle low. Prices remain vulnerable to sharp dips and general market risk.
GDXJ daily chart
Juniors bounced sharply, supporting a possible low. A close above the gap near $41.50 is the next step in confirming a bottom.
Word of Caution: Markets are likely to remain volatile through 2022. Whatever happens today could swiftly reverse tomorrow. Try not to read too much into one week’s price action.
Read Full Story »»»
DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
• DiscoverGold
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