gold FIBONACCI PRICE EXTENSIONS SHOW $2600 AS A POTENTIAL PRICE TARGET FOR GOLD
This Weekly Gold chart highlights a longer-term Fibonacci Price Extension pattern. It suggests that $2240 and $2600 are likely to be price targets for Gold if this rally continues. Many traders believe the last 15+ months of sideways trading in Gold has formed a “handle” for a bigger “cup-n-handle” price pattern. Ideally, I would like to see a Gold rally above $1925~1940 before attempting to confirm the “cup-n-handle” pattern.
My interpretation of the global markets and Gold is just as I stated above. Gold is starting to become more interesting for global investors as the China debt/economic crisis continues. Risks are mounting if the economic contraction in China/Asia continues. Global risks are already excessive after 24+ months of extended global central bank functions, easy credit, and increasing inflation. As a result of inflation, pricing pressures will eat away at profits for many firms. Slowing consumer demand could blow a big hole in demand for many assets.
Traders should prepare for a bout of price volatility headed into the end of 2021 as these issues continue to work themselves out. My technical analysis suggests this rally may continue into early January 2022. My cycle analysis indicates a change in price trend may initiate after January 18th or so. Yet, I also believe this potential rally in Gold may be just starting, and global concerns may be festering while the US stock market rallies. This is because global traders are piling into US assets/stocks while attempting to avoid economic/debt concerns in other world areas.
Gold will continue to react to this new concern and fear as it populates in traders’ minds. The luster of Gold will likely continue to grow – which may push Gold above $1950 before the end of 2021. Time will tell.