Gold cup and handle will take it to $3,200
First of all, I've held gold since the financial crisis in 2008 and I've never sold any of it, I've only accumulated. But, as an investor, we always have to keep our eyes open for the possibility of longer-term trend changes that may go against our gut feeling. This is what drives me to zoom out and look at the bigger picture. It is true that we see enormous money printing by the Fed and other central banks and that may lead us to assume that everything will eventually go up. I don't trust such theories unless I can back it up with a chart. In this case, the 3M gold chart does look like we could see significantly higher prices. What we have here is a diagonal cup and handle pattern. We are currently seeing a little bit of chop just below the resistance line and this could result in a bit of an unpleasant year for gold holders or investors in gold mining. Silver will most likelt suffer from this as well. But the long-term points to a cup and handle target above $3,200. The resistance line will be touched again and maybe even twice, but the highest probability in such situations is that a breakout follows. The more the resistance line gets tested, the more volatility will follow once it breaks.
Note that this is a very long-term view and thus long positions are mostly suitable for those who don't mind a bit of uncertainty in the shorter-term.
Note that this is a very long-term view and thus long positions are mostly suitable for those who don't mind a bit of uncertainty in the shorter-term.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.