The gold price forecast puts gold at $1,500, a level not hit since 2013. The $1,500 forecast was made by the credible Frank Holmes of US Global Investors and not some perma-bear gold bug as reported by MarketWatch here.
Already in 2017, gold prices are up close to 8% which is what they gained for all of last year.
Gold is benefiting from the weakening U.S. dollar. In other words, President Trump’s policy agenda being derailed by ObamaCare is acting as one of the biggest catalysts for gold.
Gold Price Chart
I like to chart gold with a Renko chart using a box size of ATR 14. A Renko chart removes a lot of the noise inherent in a normal gold price chart. Remember, gold is girlie. Gold is always a drama play. The Renko chart helps remove a lot of that drama-noise on the chart so that you can better see the underlying trend. We are currently working on a 3 box reversal which is a bullish signal for gold.
Simple Gold Trading Strategy
Rather than try and pick high-quality gold mining stocks, I prefer the VanEck Vectors Junior Gold Miners exchange-traded fund (GDXJ). Just last month, Van Eck announced that it was expanding the criteria determining which stocks could be included in the popular gold mining ETF because the ETF had gotten too big as investors have piled into the fund so far in 2017.
The chart doesn’t look pretty. Large Players volume and the Twiggs Money Flow looks weak. The chart pattern I do like is a Symmetrical Triangle that appears to be forming. Remember, gold is never just a technical play. The catalyst for gold is always drama and we have plenty of that right now.
Gold Price Forecast Justified
Is the gold price forecast of $1,500 justified? I think so because gold is how you play drama.
There’s so much drama going on that even John McCain left the hospital so he could use his brain-cancer to try and push forward his own agenda. That’s drama folks. Or course John McCain didn’t really make anything better, he just stirred up more drama. Meanwhile, the debt ceiling limit is fast approaching and no one is talking about it because their too busy arguing over ObamaCare that is completely collapsing now.
The FBI and Mueller, at the bequest of the Establishment, are doing a Russia witch hunt against Trump while Trump’s own Attorney General Jeff Sessions recused himself of the Russia investigation AFTER being appointed effectively tricking the President. Drama!
President Trump has already taken the US to the brink of war with Russia probably, in part, to prove he’s not in collusion with Russia.
Then you have President Trump using Twitter to bash his political enemies every chance he gets putting drama on top of drama.
All this drama bodes well for gold and the signs are that it is likely going to get worse so I’ve picked up some GDXJ in my personal trading account. You guys know me, I’m in and out for a quick gain if I can get it.
Are you thinking about buying gold? Leave your comments below.