Gold Price Forecast – A Runaway Move Could Push Gold Towards $3000 by August

The 2005 Gold Breakout

In 2005, gold broke decisively above the $450 level and entered the recognition phase of the bull market. Notice how prices kept rising despite overbought conditions; corrections were sharp, brief, or absent.

I point this out because I believe the current market just entered its recognition phase, implying prices may rise higher and run longer than expected. Don’t lose your seat by selling too early – the bull market is just getting started.

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Inflation Update

CPI increased 0.4% for March and 3.5% annually. At this rate, inflation could creep back above 4% by August and maybe higher if we see crude oil spike over conflict with Iran.

source: https://www.bls.gov/news.release/cpi.nr0.htm

Gold Cycle Indicator

The Gold Cycle Indicator finished at 283. I’ll look to hedge positions once it enters cycle topping (red).

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Gold

Gold immediately reversed yesterday’s swing high; momentum continues to the upside. If prices extend above $2400, this could turn into a runaway move, hitting $2500+ quickly and $3000 by August.

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Silver

Silver is showing underlying strength, and prices are pushing to the upside. A breakout above $30 could trigger significant upside, potentially reaching $50+ in 2024.

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Platinum

Progressive closes above $1000 in platinum would open the window to $1200+ later this year.

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GDX

Miners reversed yesterday’s swing high. The trend looks strong, and the sooner prices close above $35.50, the more bullish I’ll become.

GDXJ

Juniors are short-term overbought as they approach last year’s highs. Prices are due for a pullback, but I wouldn’t be surprised if they continue shooting higher.

SILJ

Silver juniors are overbought as the trend approaches last year’s high ($12.15). The sooner prices break above $12.00, the more bullish I’ll become.

S&P 500

Stocks are due for a correction as markets reprice to fewer Fed rate cuts. If the 10-year yield climbs above 5%, equities could adjust sharply lower.

Conclusion

The next big surge in gold has started, and sub-$2000 pricing may be forever in the past. Gold miners are unloved, extremely undervalued and have a lot of potential upside in the coming months and years. Watch silver for clues.

AG Thorson is a registered CMT and an expert in technical analysis. For daily market updates, consider subscribing www.GoldPredict.com.