Gold Price Forecast—Expect New Highs after A Brief Pullback
The comments below are an edited and abridged synopsis of an article by A.G. Thorson
January non-farm payrolls in the US showed 517,000 jobs created versus the expected 190,000. And unemployment fell to 3.4% from 3.5%. This implies that the Fed will have to keep hiking rates beyond March.
Thorson believes gold formed a major bottom in 2022, and the price is in the first phase of a multi-wave advance towards $3,000 in 2024. The next 4-year cycle should peak ahead of the 2024 presidential elections.
The main reason gold spikes every four years or so is because of political uncertainty and social unrest. Each side fears the other winning. The greater the tension between parties, the higher gold will climb. It is anyone’s guess who the 2024 candidates will be, but it’s bound to be controversial.
In the meantime, gold is short-term overbought, and a pullback in price is conceivable. On the bullish side, progressive closes above $2,000 would support a breakout and retest of $2,080.
If gold keeps dropping from here, expect the price to find support between $1,820 and $1,860. Analysis shows that a breakout above $2,100 is possible by July or August 2023.
Thorson believes gold is in the second inning of a 9-inning advance that should take the price to a new all-time high in 2024. Precious metals remain under-owned, and pullbacks could be mild to moderate in 2023. Expect a spike in 2024 ahead of the presidential elections.