The ECB cut rates by .25% Thursday, trimming growth expectations for 2024 and beyond.
Gold futures exploded through resistance near $2,560, confirming a breakout with a medium-term price target near $2,800.
Expect increased volatility around next week’s Fed announcement. A weekly finish above $2,650 would be most bullish outcome.
GOLD- Thursday’s breakout in gold supports a phase II rally towards $2,800. The most bullish outcome would be if prices finish next week above $2,650. In that case, I’d have to raise my price target closer to $3,000 immediately.
SILVER- Silver could be on the verge of an explosive catch-up rally to gold. A weekly close above the May $32.75 high in September or October could ignite a surge towards $40.00.
PLATINUM- Platinum closed above the downtrend line, and we may have a breakout. Prices have been rangebound for years and need to clear $1,100 to register a significant breakout. At less than half the price of gold, platinum remains an absolute bargain, in my view.
GDX- Thursday’s bullish reversal day supports an immediate breakout to fresh highs. Back-to-back up gaps (should they hold) supports the potential for an accelerated advance. If gold reaches $2,800 before the elections, as expected, GDX could see $50.00 before year-end.
GDXJ- If Friday’s price gap holds, GDXJ could be on the cusp of an explosive run towards $60.00. With gold over $2,600, perhaps investors will finally wake up.
SILJ- The silver junior mining ETF remains deeply undervalued. Upside follow-through that closes above the July $13.41 high would support a bullish breakout with a minimum target around $18.00. There’s no telling how high prices could go when silver breaks above $50.00.
GOLD WEEKLY: Barrick Gold is above the 4-year trendline, and I see the potential for a major breakout, similar to 2019. If the rally holds, a run to $28.00 seems inevitable.
Closing Thoughts
Expect higher gold prices into late October. Gold could trade sideways or plunge into December, depending on the election outcome. Overall, I believe the gold bull market is just getting started and should last for the remainder of this decade.
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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