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Here’s Why Gold Could Be Headed To $3,000

ByChris Kimble
Published 01/12/2021, 11:06 AM
Updated 07/09/2023, 06:31 AM

Gold Monthly Chart.

In the spring of 2020, I highlighted the potential for a very bullish long-term pattern for gold.

That pattern was the popular “cup-with-handle” formation. At that time, it was still attempting to fill out the right side of the “cup” formation.

Today, we take another look at the “monthly” chart of gold and get an update on that pattern.

Gold “Cup With Handle” Formation Eyes $3,000 Price Target?

As you can see in today’s chart, gold has completed the “cup” pattern and is currently pulling back into what could be the “handle” part of the formation. Ideally, gold bulls want to see a decline down to the $1,550-$1,600 level before another big rally begins.

As we noted back in the spring of 2020, the Fibonacci symmetry of this cup formation is very intriguing. Gold peaked at its 261% Fibonacci extension price level in 2011 at (1) and again in 2020 at (2) – this formed the “cup.” And a pullback into the 38.2% Fibonacci of the “cup” formation would be an ideal spot for the “handle” to form.

Does gold need to form a “handle” before moving higher?

Not necessarily. But it sure would help gold get to $3,000 a lot sooner. Stay tuned.

Latest comments

I read an article explaining different possible outcomes for the gold spot price, using econometrics explaining different correlations and how they are going to affect the future price, when I open this article I was expecting something similar not a Tea Cup Formation are you kidding me, is like trying to guess the future reading Tea leaves.
I think he is right. Gold made a big move up to 2000 and it has to cool down a bit. BTC is sucking away currently the money anyway, but in a year I believe as well that gold could go much higher. Money is jumping from one asset to an other and harvesting profit. I believe in a year precious metals could be the new favorite - I'm not a gold bug, just follow the happenings
Why you didn’t say $5000.. hahhaha
Here's why: because if one posts a bullish and bearish chart, they get to claim to "be right" months later, after everyone forgets what they originally posted. That's the infotainment business model.
$1500 would be difficult to achieve with inflation and money printing and stimulus... etc...
1550 sound too cheap for gold today
Thanks to the políticians that the only solution is to print money
Why most Analysist think going higher requires a hard bull backTo require better buying price?!And why do most tend to predict based on predicted fundamentals
because that's where they got their analysis from probably?
Could!? Just say you have no idea. Using the word could tskes awsy all accountability.
What is the timeframe expected?
1+ year
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