Expect Gold & Silver to Pullback Before the Next Move Higher - Chris Vermeulen (13/12/2018)
Dec 13, 2018
The recent downward pricing pressures in the US and global stock markets have prompted Gold to move well above recent highs near $1242. We predicted this move over 40 days ago with this research post. We still believe Gold and Silver are setup for a bigger move higher, yet we believe the recent upswing will briefly pause and retrace to levels we are showing, below, before attempting a bigger move to the upside.
This Daily Gold chart shows our Learning Fibonacci modeling system and highlights three key resistance levels. We’ve also drawn a shaded RED range around the price levels predicted by our Fibonacci modeling system. As you can see, the current Gold price has reached beyond the CYAN and GREEN levels and is just below the higher RED level. We expect these resistance levels to briefly hold as price retraces back below $1230 (just below the BLUE support level). At that point, the bottom will likely be a very quick, “V” type bottom, and prices will likely begin to rocket higher into the end of 2018 and through the early part of 2019.
This Daily Silver chart, the “other shiny metal”, is showing how recent highs, near $14.80, are continuing to restrict the upside price movement. This resistance is similar to what we’ve seen in Gold and we expect a minor downside price rotation in Silver to play out before a much bigger move explodes higher. Our Fibonacci modeling system is suggesting prices are capable of rocketing towards $16.00 on a strong price breakout and we believe some level of fear will enter the global markets throughout the end of 2018 and into early 2019. This fear should push metals prices higher before briefly pausing near the end of Jan 2019.
Our predictive modeling tools are showing us that this initial upswing in Gold and Silver will most likely stall between February & March 2019 before starting a much bigger and more explosive move in April~May of 2019. We will continue to alert you to new analysis when our modeling systems predict future price changes and this means we could continue to see increased volatility in the global equities markets for quite some time.
Don’t miss a golden opportunity.
Now that you’ve gained a deeper understanding about gold, it’s time to browse our selection of gold bars, coins, or exclusive Sprott Gold wafers.
About Sprott Money
Specializing in the sale of bullion, bullion storage and precious metals registered investments, there’s a reason Sprott Money is called “The Most Trusted Name in Precious Metals”.
Since 2008, our customers have trusted us to provide guidance, education, and superior customer service as we help build their holdings in precious metals—no matter the size of the portfolio. Chairman, Eric Sprott, and President, Larisa Sprott, are proud to head up one of the most well-known and reputable precious metal firms in North America. Learn more about Sprott Money.
Learn MoreYou Might Also Like:
Looks like there are no comments yet.