Gold Forecast: Gold Could Reach New All Time Highs in April, Watch Miners

• Gold closed above significant resistance, and a breakout to new highs could be days away.

• Gold miners are starting to perk up and may skyrocket…IF gold jumps to new highs.  

• I'll be watching gold miners (GDX) for clues - below are my current thoughts on Spot Gold and GDX.

Our Gold Cycle Indicator is at 314 and prices are nearing the red zone.

GOLD CHART: Gold closed Tuesday at $2038.20, and prices are on the doorstep of new all-time highs. A rally above $2080 with bullish follow-through would signal a meaningful breakout, in my view. 

Bullish Note: I still believe gold could break above $2000 and never look back as it did with the $500 level in 2005. 

GDX CHART: The top panel shows MFI is near-term overbought (blue arrows). A similar reading in January triggered a 1-month correction.

However, it is important to note that in robust bull markets, indicators like MFI can stay overbought for very long periods.

BULLISH: I think the rally has more upside potential as long as GDX does not close below the January $33.34 high.

NEUTRAL: Closing below $33.34 could trigger a 3 to 5-day pullback to relieve overbought conditions and let the 50-day EMA catch up.

BEARISH: A reversal lower and progressive closes below the 50-day EMA would support a more profound (possibly multi-month) correction.

Final Thoughts

This move in precious metals looks strong. We could be on the verge of a meaningful breakout. The next few days are important.

I would view a strong 5% up day in gold miners (GDX) today or tomorrow as very bullish.

Note- US markets are closed Friday, April 7, 2023, in observance of Good Friday.

Disclaimer: I own gold, silver, and miners, and I’m very bullish.

AG Thorson is a registered CMT and an expert in technical analysis. He believes we are in the final stages of a global debt super-cycle. For more charts and regular updates, please visit here.

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