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Weekly Gold Price Charts Foretell a 25% Increase
If you are a gold bug, it’s important that you pay close attention to gold price charts. They are foretelling that something big could be in the making, and that 2018 could be a stellar year for the yellow precious metal.
One chart that gold bugs need to pay attention to is the weekly gold price chart. Look below and pay close attention to the lines drawn.
On the weekly gold price chart, we have been seeing a technical analysis pattern forming since 2015 called an “ascending triangle.” This pattern forms when there’s an uptrend but the price finds it difficult to pass beyond a certain resistance level.
Chart courtesy of StockCharts.com
You see, technical analysts see this pattern as a bullish pattern and expect price escalation once the resistance level breaks.
With gold prices, we notice a lot of resistance between $1,355 and $1,375.
Given what’s happening these days, including uncertainty from the Federal Reserve, President Donald Trump starting a trade war, and the U.S. dollar declining, it wouldn’t be shocking if investors rush to safe havens and gold prices soar.
Now, the big question: How high could the gold price go if it breaks above $1,375?
To predict where gold prices could go, technical analysts take the widest part of the triangle and add the length above the breakout level. In the chart above, the widest part of the triangle is between December 2015 and July 2016; it’s roughly $300.00 wide.
So, one could say that, if gold prices are able to break above the $1,375 level, we could set atarget price of around $1,675 for gold. That’s roughly 25% higher than where it currently trades.
This Indicator Says Gold Could Be Setting Up to Skyrocket
Look at the chart below and pay close attention the blue line.
Chart courtesy of StockCharts.com
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