At its lowest point, gold prices were down about 10% for the year, but that narrative is starting to shift to the upside. One market analyst foresees gold pushing past the $2,000 mark in 2023 as the precious metal starts to show early signs of strength.
Gold prices are already starting to rise, with a gain of about 10% within the last few months. Economic conditions could be feeding into the recent strength, such as the potential for the U.S. Federal Reserve to scale back its aggressive rate-hiking as well as a potential recession spurring a taste for safe haven assets again.
Technical conditions favorable to gold are also forming. In a recent interview with Kitco News, Avi Gilburt, founder of ElliottWaveTrader.net, says that “gold and silver are getting ready to rise after a two-year consolidation period. He sees gold prices pushing solidly above $2,000, and said silver could easily double to above $40 an ounce and eventually push back to its all-time highs at $50.”
“I was taught that if you didn’t have anything nice to say, then don’t say anything at all, and that is what it has been like for gold and silver,” said Gilburt. “I’ve just been biding my time and waiting for the setup for the next rally to $2,100.”
Gilburt cited the long-term horizon for gold is looking positive given its recent historical price movements via the Elliot Wave Principle — a technical indicator that looks at market cycles in order to forecast trends. As the Kitco News article mentioned, Gilbert has been a keeping track of a five-way rally in gold that dates back seven years ago.
“Back in August of 2020, we hit the top of the third wave. From then, until we hit the low back in early November of this year, we basically had a two-year consolidation in a fourth wave. We are now preparing to rocket higher in a fifth wave,” he said.
Gold Price in US Dollars data by YCharts
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