Gold's Breakout Across Major Currencies Paves the Way for a Surge to $3,000
Since April, gold has experienced a choppy rise, hindered by the lack of a breakout across all major currencies—until now. Here's what to expect next.
Throughout much of the summer, the precious metals community expressed frustration over gold’s sluggish uptrend, characterized by a 'two steps forward, one step back' pattern. In a recent Substack piece, I discussed the reasons behind gold's tepid uptrend and urged the community to keep the faith, as I believed a stronger rally was imminent. In that piece, I explained that gold's uptrend since April was driven more by weakness in the U.S. dollar than by gold's own strength.
When priced in other major currencies, gold had made little to no progress since April. The silver lining, however, was that gold was poised to enter a much stronger bull market once it achieved a breakout across all major currencies. Sure enough, late last week, gold finally broke out across all major currencies, signaling that the next leg of the bull market has officially begun. I'll now share those charts and explain what I anticipate for gold's next move.
Spot gold priced in U.S. dollars had a succession of breakouts over the past few months including breaks above the $2,475 and $2,525 levels, which are now supports. Gold’s breakout will remain valid and in-play as long as it remains above those key support levels.
