Gold Outlook: We’ve been right about gold… and still see more upside.
Our gold outlook since March of this year has been shockingly accurate. We called a local bottom about a month ago and gold prices have moved steadily higher ever since.
We still see more upside ahead. Here’s why…
The Value of Gold
Gold entered the SSI Green Zone back in March. Since then, it’s been bouncing around just above the Yellow Zone between $1,210 and $1,290.
Our time-cycle forecast for gold was originally published back in March and it has been shockingly accurate. We called the July bottom based on this forecast as well and prices have moved up hugging the time–cycle forecast line nicely.
The volume–at–price (VAP) chart shows that gold is once again trading above peak price–volume level of $1,250. If gold can continue to move a bit higher, it should have a safe shot at $1,400 or higher.
Higher Gold Prices Ahead
You can see in the chart here how when the commercial hedgers are not very short the gold futures markets, the price of gold tends to move higher. By not being super short gold futures, the smart money is telling us that they don’t want to sell their gold at current prices. That usually means higher prices ahead.
I’d really like to see gold break out to $1,400. I’m sure you would, too.
Staying the course,
Richard Smith, PhD
CEO & Founder, TradeStops