This is bad news for gold (GOLD) bulls. The price of gold has now officially broken down after one of the most sensational patterns we have ever seen.
We have been updating our readers for more than 2 months now, saying that the price of gold (as well as gold miners) would start trending any time soon. We expected this to happen at the end of April, but an incredibly fascinating ping-pong between support and resistance in a huge triangle pattern continued until … this week.
- Early June, we wrote Gold: Decision Time After U.S. Fed Rate Hike
- End of May: Gold Price Attempting To Breakout And Set Bullish Trend For 2017
- Mid May: Gold Price About To Trend, Near Moment Of Truth For 2017
- Early May: Will The Price Of Gold Benefit From The Dollar Breakdown?
- Mid April: Gold And Dollar Close To New Bullish Or Bearish Trend
Suspense? More than that, it was a thriller.
We believe, with this week’s price action, the odds favor a continued breakdown in the gold price and gold miners, for sure in the coming months. The only possibility of a false breakdown is that gold prices recover really this week, and move back above $1250. That is because the $1220 area could provide some support, but it really has to happen “right here right now”.
We suggest to stick to price analysis, and forget about the fundamentals like central bank influences and the likes, as seen in articles like this one. They have no value for one’s portfolio, they only make up for interesting gold stories.
Otherwise, we believe $1100 gold is coming, and, if that does not hold, the gate will be open for $1000 gold at the end of this year. If that comes true it will be a mega buy opportunity, exactly as we forecasted last year in A Gold Price Forecast For 2017. We will find out very, very soon!