Gold Price Forecast 2017/2016
Gold's bull market is still very much intact. In fact, it appears that the all-time high could soon be breached.
However, there's an obstacle on the chart that gold has to overcome. Indeed, another failure at this obstacle could trigger a drop larger than the one of a few weeks ago.
source: tradingview.com
The line at the top of the chart is the obstacle that has to be overcome. Another failure at that point could drive the gold price below $1,000. Yet while such a drop is possible, it appears very unlikely at this point.
Furthermore, there would be clear indicators in the market -- particularly from stocks -- that such a move was imminent.
On the flip side, a breakout at that obstacle line could precipitate the greatest gold rally of all time. That's because other factors would create a panic that would make gold and silver highly desirable.
In other words, a significant gold breakout at the obstacle line above could happen -- just as stocks and bonds were collapsing. And collapse comes no bigger than from a bond- or stock-market swoon (in that order).
A breakout at the line shown above would be similar to the 1978/1979 breakout -- before gold exploded to a high of $850. However, back in 1979, the metal did not align properly with debt- and stock-market collapses. But this time it could align perfectly, possibly delivering a fatal blow to the international monetary system.