Gold Price Forecast: Next Surge to Follow US Election
The comments below are an edited and abridged synopsis of an article by Christopher Aaron
Gold prices continue to correct from the new all-time high set on August 6, 2020. On that date, gold hit $2,074—the highest cost for one ounce of gold in history. Since then, gold has corrected some $226, or 10.9%, to the recent low of $1,848 on September 28.
What is next for the price of gold? Has this been a major long-term top, or is there more upside to come?
Analysis suggests the latter—that gold is about to embark on a major new up-leg that should take it well above the recent $2,074 high.
Further, the timing of this next advance may be sooner than most people expect, perhaps as soon as weeks following the US election. The time to prepare for this investment scenario is now.
Up for discussion: gold is retesting its former all-time high; what a retest is; a wedge pattern confirms local bottom; a US election as the trigger; and the takeaway on gold.
Gold is now retesting its former 2011—2012 all-time high resistance zone between $1,800 and $1,920. Following a successful retest, a major move higher is expected.
Gold is forming a classic terminal wedge-bottoming pattern within the retest zone, and it is set to resolve in the November/December window, following the US election.
Something is brewing in the world that should cause a dramatic advance in gold this year and into 2021. Advisors should be preparing clients and for the expected move in gold and related gold mining equities.
While one more nominal new low toward $1,830 may still fit within the pattern, investors should be finalizing positions soon, so that they do not chase gold higher once it starts advancing.