Technical analyst Taki Tsaklanos is out with a very bearish call on gold prices through next year, which he says will plummet due to rapidly deteriorating market conditions.
As the price of gold and silver came down sharply, many investors are asking what the future price of gold will be. Although we do not pretend to have a crystal ball, we observe sufficient signals in the charts to make a make a call about the future price of gold into 2017.
In general, the precious metals market has turned very sour. Gold registered it largest loss on a weekly basis since it crashed in 2013. Moreover, gold and silver miners, said to lead the precious metals complex, have truly crashed this week.
Still, mainstream media, which we consider a barometer for sentiment, remains very moderate. That should be considered a bearish sign. These are some of the headlines of today, as gold lost more than 5 percent in two days, silver almost 15 percent in two days and precious metals miners even more than 15 percent:
The only analysis that is truly bearish appeared on Seeking Alpha the future price of gold was forecasted to drop below $1000. Though that article was not written by ourselves, we come to the same conclusion when analyzing price behavior and sentiment. And it surely confirms our proper gold price forecast for 2017.
Future price of gold points to $1000/oz as the most likely 2017 forecast
The gold chart sent a clear signal this week. As seen on the first chart, gold dropped below the important $1250 level. The price of gold clearly returns in the same bearish trend channel which started with the big collapse of April/June of 2013.
With that, we get the ultimate confirmation that gold is still in a longer term bear market, and that it is moving to the lower area of the channel which is below $1,000 /oz.
The SPDR Gold Trust ETF (NYSE:GLD) closed at $117.10 per share on Friday, down $2.65 (-2.21%). The largest fund tied to gold prices has gained 15.41% year-to-date, but is now nearly 11% off its 52-week highs of $131.15.
This article is brought to you courtesy of Investing Haven.