Gold could climb toward $8,000 over the long term if its bull flag chart pattern holds, according to an Investing.com analysis. The piece sets a nearer-term target of $4,800-$5,000 and outlines a wider trading range for silver, while pointing to junior mining stocks as a lead indicator for the sector.
Gold may reach $8,000 over the long term if its long-term bull flag pattern holds, according to the analysis. The nearer-term target sits in the $4,800-$5,000 zone, a level that recurs across the daily and weekly charts in the piece.
A pullback from current levels may not happen, but if it does, it would likely halt in the $4,200-$4,100 zone and form a right shoulder in an inverse head-and-shoulders pattern, the analysis says. That pattern's target is the same $4,800-$5,000 resistance zone already flagged on the daily chart. On the weekly timeframe, the $4,800-$5,000 area could function as a pitstop on the way to at least $8,000, per the analysis. That drift echoes the same bull flag structure already forming on the shorter-term charts.
The analysis also lays out a new range trade for silver at $50-$120, with a potential surge to $190-$200 as the next move for the metal.
It adds that the CDNX index, a lead indicator for junior, intermediate, and senior mining stocks, could rise well beyond 2,000 and probably beyond 3,000, based on the size of an inverse head-and-shoulders pattern on its chart. Separately, the GDX gold miners ETF's daily chart is seen targeting the $112-$116 area, driven by a similar flag-like drift.
Source: Investing.com
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