Down First, Then New Highs

Gold to $2700. Silver to $32-$34. GDX to $40+. This is where we are headed, assuming we don’t get a stock market crash in the interim. But we will have to negotiate some short-term pullbacks ahead of that.

GOLD

Prepare for Gold's Next Move: Short-Term Pullback Before $2700?

Gold is oversold in the short term, as we can see from the RSI at 30. It has tagged previously forecast support at $2520, based on the multiple prior highs between Aug. 12 to Aug. 14.

However, the daily chart shows multiple negatively divergent higher highs going back to the May 20 peak at ~$2460, which just so happens to be the support if Gold breaks $2520. The daily RSI is also coming off an overbought level, which supports a further move down.

Simply put, I am expecting a drop to $2520 or $2460, then up we go to $2700 next.

SILVER

Silver Price Forecast: Short-Term Weakness, Then a Surge to $32-$34

Silver has just broken support at $29.25. The next level of support is at $29.00. If that is broken, then a significant area of support comes into play at $28.80-$28.50. I expect that to hold and then head up to new higher highs.

As with Gold, although the short-term chart shows Silver being extreme oversold, the daily chart shows there is plenty of room to fall further. 

Once these corrections are done, I expect Silver to join Gold at new higher highs to $32-$34.

GDX

Finally, with respect to the miners…  

GDX has hit a clear negatively divergent higher high at $40, a nice round number, and is now tuning down. Two gaps were left behind on the chart at $37.50 and $36. As long as we don’t close below $34, I’m expecting this correction to end at $37.50 or $36, then up we go to new higher highs.

CONCLUSION

Down first, then up to new highs next. This presents a compelling opportunity to buy gold and silver bars at lower prices before the next surge. With the potential for significant gains on the horizon, securing physical gold and silver now could be a strategic move for those looking to protect and grow their wealth.