Gold is Getting Ready for Another Surge After Seasonal Corrections

At Extreme Investor Network, we provide in-depth analysis and insights into the world of the Stock Market, trading, and Wall Street. In our latest blog post, we discuss the recent market recap focusing on gold prices and the technical price development.

Gold prices have a history of strong bullish price patterns driven by significant economic and geopolitical events. From the breakout in the 1970s due to geopolitical tensions and inflation to the rally in the early 2000s fueled by economic uncertainties and increased demand from China and India, gold has consistently proven to be a safe-haven asset during times of economic instability.

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Currently, a new cup formation from 2011 to 2020 is indicating a strong bottom before another significant rally. The breakout above the critical $2,075 level in March 2024 has signaled the initiation of a long-term price surge projected to continue for several years. Geopolitical uncertainties, such as the Middle East and Russia-Ukraine wars, further support this bullish outlook.

Despite expected short-term corrections in May/June, the long-term trend remains strongly bullish with initial targets around $3,000. Based on our analysis, a correction was expected in May and June 2024, with a likelihood of a strong rally in July and August.

In examining the technical price development, we have observed the formation of an ascending broadening wedge and an inverted head and shoulders pattern on the weekly chart. The pivotal level of $2,075 has been broken, and the price has initiated a strong surge to higher levels. This indicates a potential continuation of the upward trend in the coming months.

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