Will gold price bounce back?
After hitting record highs, the yellow metal has pulled back. After studying his charts, independent analyst Alistair Strang has some new targets for the gold price.
26th November 2024 07:13
by Alistair Strang from Trends and Targets
It’s time for a holiday in America, with the market winding down for a day off in New York on Thursday followed by what is usually a seriously boring morning on Friday until the US markets again close, allowing everyone to go shopping for bargains in Black Friday sales. But for a real bargain, you had to read our report on 21 May of this year as it proved “pure gold”.
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The reason we’re patting ourselves on the back comes from the price of gold making its way from $2,429, even managing to hit our top target level of $2,778 on 30 October by closing that session at an impressive $2,786.
Of course, since then, the price of gold has faded somewhat as there was a fairly major issue at our third level ambition. According to our calculations, we ran out of targets above $2,778 and, while the price marginally exceeded our top level, it’s difficult to spout massive enthusiasm for the future unless the metal enacts a period of volatility or, alternately, the market could simply gap the gold price up very substantially.
Currently, above $2,720 has the potential of movement to an initial $2,791 with our secondary, if beaten, now working out at a fairly humble looking $2,877.
At such a level, if it ever appears, we shall again expect some volatility in the market place, if only to lay the foundations for future growth. But at the moment, our opinion remains to strongly doubt those journalists now proposing $3,000 and above as the next target level. Some stutters look essential.
If things intend to go a little wrong, below $2,562 should trigger reversals to an initial $2,514 with our secondary, if broken, an eventual probable bottom of $2,424.
Source: Trends and Targets. Past performance is not a guide to future performance.
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.
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