Chris Vermeulen: Gold on Cusp of Breakout, US$2,200 in Reach

TL;DR

Christopher Mullen expects gold and silver to continue their upward trend, with gold potentially reaching $2,200-$2,400 per ounce and silver potentially reaching $36 per ounce in the next two to three months.

Transcript

i'm charlotte macleod with the investing news network and here today with me is christopher muellen chief market strategist at thetechnicaltraders.com thanks so much for being here today chris yeah thanks for having me charlotte chris the last time that we spoke was toward the end of july when gold was just on the cusp of two thousand dollars per o... Read More

Key Insights

• 📈 Gold has experienced a controlled pullback and is forming a bull flag pattern, indicating a continuation of the upward trend.
• 🛀 Gold miner juniors are also showing positive market evolution.
• 🏅 Technical analysis suggests potential price targets for gold between $2,600 and $3,400 per ounce.
• 📢 Silver is expected to reach $36 per ounce, with a possibility of reaching $52 per ounce in the near term.
• 🥺 Declines in silver can still be considered bullish if they lead to the formation of sustainable bull flag patterns.

Questions & Answers

Q: How long does Christopher Mullen expect the consolidation period for gold and silver to last?

Mullen believes that the consolidation period could end as early as this week, with a potential two to three-month upward trend following it.

Q: What is the price potential for gold in the long term?

Looking at technical analysis, Mullen predicts price levels between $2,600 and $3,400. However, considering fundamentals, such as stimulus plans, he suggests that gold could rise to $7,800 or even $9,000 per ounce.

Q: How does Christopher Mullen approach investing in mining stocks?

Mullen prefers trading ETFs as they provide exposure to a basket of stocks. When a new bull market emerges, he reallocates some of his portfolio from index ETFs to the emerging sector, such as gold and silver mining stocks.

Q: What is the price target for silver?

Previously set at $34 per ounce, the new price target for silver is $36 per ounce. Christopher Mullen believes that if silver breaks out and reaches $36, it could continue to rise towards $52 per ounce.

Q: How can a decline in silver to $22 per ounce still be considered bullish?

A decline to $22 per ounce would allow silver to form a larger, more sustainable bull flag pattern, which could lead to even higher prices. This cleansing of the market enables new investors to enter at a lower price and encourages long-term holding.

Summary & Key Takeaways

• Gold experienced a controlled pullback after briefly breaching the $2,000 per ounce mark, forming a bull flag pattern that indicates a continuation of the bullish trend.

• The gold miner juniors are also forming a similar pattern and have started to break out, signaling positive market evolution.

• Christopher Mullen predicts that the consolidation period for gold and silver could wrap up soon and expects a gradual increase in prices over the next two to three months.