Fibonacci Price Amplitude Arcs Predict Big Gold Breakout

The comments below are an edited and abridged synopsis of an article by Chris Vermeulen

Precious metals are the focus of many researchers and traders; Bank of America recently raised its gold target to $3,000. In December 2019, Vermeulen published an article suggesting precious metals were setting up a long-term pattern that should result in a breakout to the upside for gold. Every trader must understand the consequences and market dynamics that may take place if gold rallies above $2,500 over the next few months.

Fibonacci Price Amplitude Arcs Predict Big Gold Breakout | BullionBuzz
Gold investment concept. Illustration of growing bar chart.

An upside price breakout in precious metals suggests broad market concern related to future economic growth and global debt. There is no other way to interpret the upside price move in gold.  In 2015, gold was trading near $1,060.  Currently, gold has risen by nearly 64% and is trading near $1,740. If it breaks higher (possibly to levels above $2,100), this would complete a 100% upside price move from 2015 lows and would set up an incredible opportunity for further upside price advancement.

The move in gold and the major global markets over the next 12+ months will be incredible. Gold rallying to $2,100 or higher means the US and global markets will remain under some degree of pricing pressure throughout the next 12 to 24 months. This means there are inherent risks in the markets that many traders are simply ignoring.

This is a warning for the next major market crash, much worse than what we saw in March.

Vermeulen has seen a few bull/bear market cycles in stocks and commodities. He believes that 2020 is going to be an incredible year for skilled traders, and he discusses the gold futures daily and weekly charts in depth.

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