Gold: $2800 and $3300 Targets in Play
2024.08.20 16:20
is the world’s greatest cash (money). For amateurs, setting target prices is most important. Pros simply want to identify price zones where they can eagerly buy more.
I’ll lay out these key zones today, and spice it with exciting comments on and the mining stocks, but first I’d like investors to look at some of the “backstage lighting” currently shining brightly for gold.
The double bottom pattern on is failing. It’s being overwhelmed by a H&S bear continuation pattern with a $60 target.
If the Fed needs a reason to cut rates, the fading global growth showcased by oil is certainly it. In the West, most gold pays no interest and a cut (or cuts.) in rates would get these gold bugs very excited.
The US . The H&S top action is ominous. It suggests a dangerous black stock market swan may be in the air.
A look at the . The price action is decidedly bearish. A rectangle is consolidating the downtrend and within it there is H&S bear continuation action.
I asked investors to watch for a bull flag for the “fiat safe haven” yen against the dollar, and now it’s here.
That flag is itself the right shoulder of an incredibly bullish inverse H&S pattern.
The US stock market often gyrates in August before crashing in September or October. The action of US rates, oil, and the dollar all suggest this crash scenario could be in the cards in the weeks ahead.
It’s unknown what the black swan catalyst will be, but it likely involves US debt in some way.
In the East, gold jewellery demand is surging in India while demand for coins and bars is on the rise in China.
This is bright background lighting for gold, which is already the greatest actor on the global markets stage.
In the short term, there is inverse H&S action all over this gold chart. It’s outrageously bullish and…
The weekly chart. The bull flag target is $2800, and the massive inverse H&S patterns targets a price well above that, at $3300.
In the long-term, price targets aren’t that important but buy zones are.
Aggressive investors should prep to buy the $2480 zone. It’s solid support.
Conservative players should seek $100+/oz sales in the price, and they can begin to look at $2430 as their buy zone as the price moves towards the $2530 area.
A pause is likely at $2530, but it’s probably going to be followed by a rush towards $2800.
Investors who are new to ultimate money gold should buy a grub stake now, and it’s wise to include a bit of silver and mining stocks too.
A look at the silver price action, the monthly chart. The bullish action is magnificent.
Note the bull hammer candlestick within the flag pattern. Silver may be poised to stun the naysayers and begin a rise to new all-time highs. It likely plays out over 12-24 months and that new high would bring in a lot of money managers who seek outperformance.
From the highs on this chart, gold stocks are down about 75% against gold. This is not a time to issue a top call. It’s a time to accumulate the miners, and to do it with tactical precision.
A look at the GDX (NYSE:) daily chart. GDX looks to be making a beeline towards $40, which would correspond with $2530 for gold.
From there, a light pullback to the buy zone of $37.50 (and gold $2480 or $2430) is likely to occur. By late 2025, GDX should be not only at all-time highs, but it could be the most-loved ETF in the world. Many gold stock investors have waited patiently for this scenario to happen, and now their time in the limelight is here.
