Gold Outlook: We’ve been right about gold… and still see more upside.

Our gold outlook since March of this year has been shockingly accurate. We called a local bottom about a month ago and gold prices have moved steadily higher ever since.

We still see more upside ahead. Here’s why…

The Value of Gold

Gold entered the SSI Green Zone back in March. Since then, it’s been bouncing around just above the Yellow Zone between $1,210 and $1,290.

Gold Outlook 2017

Our time-cycle forecast for gold was originally published back in March and it has been shockingly accurate. We called the July bottom based on this forecast as well and prices have moved up hugging the time–cycle forecast line nicely.

gold forecast
The time–cycle forecast has gold moving higher through September. We don’t make our forecasts based on time cycles alone, however. There are other reasons that we think gold is headed higher from here.

 

The volume–at–price (VAP) chart shows that gold is once again trading above peak price–volume level of $1,250. If gold can continue to move a bit higher, it should have a safe shot at $1,400 or higher.

gold forecast
The smart money also seems to be supporting higher gold prices ahead. The commercial hedgers in the futures markets are not excessively short gold futures contracts.

Higher Gold Prices Ahead

You can see in the chart here how when the commercial hedgers are not very short the gold futures markets, the price of gold tends to move higher. By not being super short gold futures, the smart money is telling us that they don’t want to sell their gold at current prices. That usually means higher prices ahead.

gold forecast
Another bullish sign from the futures markets is that the “open interest” is rising off of very low levels. All that really means is that more money is getting “interested” in gold. More interest usually means more buying.

gold forecast
Finally, looking at a little longer term picture for gold, we can see that if gold can push above $1,350, and even reach for $1,400, then there wouldn’t be much stopping it from testing the 2013 highs around $1,650.

gold forecast
All the signs are pointing to gold heading higher for at least another month. The falling US dollar and the political uncertainty that we’ve been experiencing should be wind in the sails of gold too.

I’d really like to see gold break out to $1,400. I’m sure you would, too.

Staying the course,

Richard_Signature

Richard Smith, PhD
CEO & Founder, TradeStops