Benjamin Cowen breaks down gold's current pullback and why he expects a low to form between July and October before the bull market resumes.
Key Points
Key Highlights:
- Gold is down about 30% from its highs, similar in size to past corrections that all preceded continued bull runs
- Based on how gold behaved in prior midterm years, the low tends to form in the August to September window, and this year is tracking that pattern closely
- The key support level to watch sits around $3,800, only a small drop from current prices, gold has briefly dipped below similar levels before without breaking its longer term uptrend
- Silver has fallen much harder than gold and is nearing its old all time highs, a level worth watching, but silver likely keeps underperforming until gold actually bottoms
Takeaway Nothing about this pullback looks unusual. The most likely outcome is a low forming sometime between July and October, setting up gold to push toward new highs heading into next year.
