Gold Price Review & Forecast
Gold parabolic rise still targets $2400, risking a price spike into $3000, similar to the historical pattern of 1980.
Short-Term: Overbought reaction is a wakeup call to Gold bugs. There is “no straight-line price move”. Markets traditionally move 3 steps forward and one step back. Gold latest correction followed a near record 9 month consecutive rise (lower green indicator). Median price drawdown is -14%, since 1980.
Gold's price correction is a healthy shakeout of weak hands, offering renewed buying opportunity at current technical levels. Immediate support serves as a 33% retracement of the rise from the March pandemic crash.
Long-term: 20-year “
trend remains your friend”, accelerated by 6-year base pattern. “Bigger base, higher in space” – targeting $2400 price confluence level, with spike risk to $3000, similar to the historical pattern of 1980.
Risk management will be key. Option strategies useful for downside protection. Avoid behavioural bias traps such as price target wars that lead to +$1000 multiple blue-sky forecasts.
#gold# #Market&Mind#
Edited 20 Aug 2020, 13:30
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