According to Graceland Investment Management President Stewart Thomson, gold prices will likely take a breather over the next week or two. However, any pullback should be viewed as a buying opportunity ahead of the 2024 bull market.
Most likely scenario: A week or two pause
cryptokoin.comAs you follow from , gold rose to record levels towards the end of the year. “The weekly chart can be described as ‘the thrill of victory and the pain of very temporary defeat’,” says Stewart Thomson. He says that widening patterns are an indicator of loss of control in the markets. It highlights the wild gold price action on Sunday night and Monday. In this context, he comments, “It was a “textbook” for the big expansion formation in the game.”
Thomson says stochastics are currently showing a cross-sell signal. However, he states that the RSI does not show it. The investor said, “The most likely scenario right now is a pause of one or two weeks. “Followed by a more significant rally above the massive ‘line in the sand’ of $2,080.”
These levels are buying opportunities for gold!
Stewart Thomson says investors looking for tactical moves in the current market should consider gold stocks. According to him, gold stock enthusiasts who sold some to the $2,080 price zone should now focus on buying at $2,010, 1,985 and $1,928. Thomson also shares “key buy areas” for the precious metal itself. These should be a focus for long-term savers, he says. In this regard, Thomson points out the following levels:
A decline from the $2,145 high zone to the $2,010 support would imply a sell-off of $130. A decline towards the $1,985 support would imply a sell at $155. Moreover, a drop from $217 to the $1,928 support would be a truly epic price sell-off. But this last one is unlikely to happen.
2024 will probably be the ‘golden year’ for metals!
Stewart Thomson is not a big fan of sloping trend lines in the market. However, he says they are helpful at times. “Note the green trend lines that define the choppy uptrend,” Thomson said. A drop to the lower trend line would put gold in the major $2,010-1,985 support area. This is a ‘must buy’ zone for most gold stock enthusiasts. I call this a golden stocking stuffer for Christmas 2023!” He comments. Additionally, Thomson is looking at the US dollar. He says the dxy chart shows “some minor reverse H&S movements.” He notes that this would support a one- to two-week pause for the shiny metal.
As a result, according to Thomson, 2024 will probably be the ‘golden year’ for metals. Finally, Thomson said, “Interest rates may remain low until 2026 or 2027 before the U.S. government creates the next big wave of inflation with its drug-like addiction to fiat, mixing, spending and debt.” After this point, the Fed will start increasing interest rates again. Gold will take the first hit here. However, this will happen at a much higher level than its current level. How high? Probably $3,000+.” says.
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