Gold Forecast – Violent Correction Starting in Precious Metals

Last week we saw the potential for a spike high in gold and silver surrounding Friday’s employment report. Prices peaked at $2089.20 on Friday and began to correct. With the spike high now complete, our work now supports a multi-week correction into September, followed by another powerful rally.

Our Gold Cycle Indicator (GCI) peaked at max cycle topping (450). Prices are starting a multi-week corrective phase. The next buying opportunity will likely arrive in September when the GCI slips below 100.

GOLD DAILY TARGETS

Gold completed a spike-high last week, and this is the beginning of a multi-week correction. Primary support arrives at $1775, with a secondary target closer to $1670.

SILVER DAILY CHART

Silver prices are melting down after the brief parabolic rise. Initial support arrives near $22.50. A retest of the $19.00 breakout area is plausible in September.

GOLD MINERS (GDX)

Miners closed below our sell trigger ($44.02) on Friday. Prices are collapsing and could reach our initial target ($37.00) quickly. After that, we see a potential buying opportunity coming in near $31.00.

For a look at all of today’s economic events, check out our economic calendar.

AG Thorson is a registered CMT and expert in technical analysis. He believes we are in the final stages of a global debt super-cycle. For more information, please visit here.

This article was originally posted on FX Empire

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