Gold Forecast—When Gold Breaks above $2,000, It May Never Look Back
The comments below are an edited and abridged synopsis of an article by A.G. Thorson
When gold broke above $450 in 2005, it never looked back. A similar outcome is possible when gold breaks above $2,000, once and for all.
The current situation: January inflation came in above expectations, suggesting the Fed may have to hike further; the repricing of short-term interest rates is putting temporary downward pressure on gold; gold could trade sideways to lower for a few weeks as interest rates adjust; and the next rally in gold could break above $2,000.
Up for discussion: The Consumer Price Index; the Fed Watch tool; the 2-year Treasury yield; a gold forecast; gold’s weekly chart; gold’s daily chart; silver’s daily chart; the GDX daily chart; and conclusion.
“With interest rates repricing a higher terminal rate, it now looks like the correction/pause in precious metals could last a bit longer—maybe March or April. Once rates peak, gold should rally and perhaps breakout above $2,000. The next major move in gold will come when interest rates are falling.”