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Here's Where 45 Years Of History Suggests Gold Prices Are Heading

Kitco News

(Kitco News) - The monthly continuation chart for nearby Comex gold futures, dating back around 45 years, shows a recent steep downdraft that saw prices this summer hit a 1.5-year low. The next major downside price target for the gold market bears is the 2016 low of $1,124.00, basis nearby futures. This longer-term chart suggests that's where gold prices are indeed heading in the next few months. Gold prices will have to push above $1,250.00 to provide the bulls some confidence, on a longer-term technical basis, that the market has stabilized, to then suggest prices trending sideways, if not sideways to higher, in the ensuing months. The presently beleaguered gold and silver market bulls must remember this: History proves that commodity market prices are highly cyclical. In other words, extended price downturns will lead to extended price upturns. Those traders/investors that have had the nerves to step in to buy at the historically lower price levels have always been rewarded--even if it takes a while.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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