Gold Price Forecast: Short-Term Bounce Before June Decline

Gold

Gold is rebounding after establishing a short-term cycle low on May 15th. This recovery is expected to extend into next week before potentially reversing and heading toward new lows in June. Over the medium term, our analysis supports a pullback toward the $2,800 level before the next up leg later this year.

Silver

Silver is rebounding with gold, and prices are expected to roll over in the coming days and break below $31.65 in June.

Platinum

Platinum is breaking higher, and prices are nearing the $1,105 peak set this time last year. Prices would have to stay above $1,100 for over a week to signal a breakout, whereas slipping back below $1,050 would promote another top in May and a new decline.

Platinum Monthly

The big picture chart of platinum reveals a 17-year descending triangle formation that requires a monthly close above $1,150 to support an upside breakout. 

GDX

Gold miners started a new interim cycle, which I expect to peak and roll over by early June. Near-term resistance near $51.00. Overall, I expect the high set in April to hold.

GDXJ

Junior miners are expected to peak and roll over by early June. A retest of the April high is possible, but I don’t expect a sustained breakout at this time.

S&P 500

Stocks rebounded into May as expected, albeit much stronger than envisioned. Prices finally completed a swing high after rallying 23% in 6-weeks. If prices continue to follow the 2022 playbook, then we should see a significant pullback (10% to 15%) through June. Anything less would signal a divergence, taking a renewed bear market in stocks off the table…for now.

Bitcoin

Bitcoin made a new all-time high after rebounding strongly from the April low. If prices stay above $110,000 through the remainder of May, we could see more upside. A correction below $100,000 is likely if prices follow the stock market lower in June.

Conclusion

Gold surged from $2,100 to $3,500 in just over a year and is now undergoing a healthy correction.

Historically, such overbought conditions often lead to pullbacks of 20% or more, supporting our $2,800 price target.

Big picture, we believe gold is in the early stages—around the fourth inning—of a powerful bull market that could push prices above $8,000 by decade’s end.

AG Thorson is a registered CMT and an expert in technical analysis. For more price predictions and daily market commentary, consider subscribing at www.GoldPredict.com.