The gold market hit its highest level since mid-August as prices climbed above $1,800. Thus, it started December on a strong note. However, the precious metal still needs to reach another important milestone. However, one analyst says there is significant upside potential for the gold price.
“I have a technical target of up to $2,750 for the gold price”
Julia Cordova, the founder of Cordovatrades, gave an interview recently. The analyst says that after the price slumped below $1,640 for the past three months in a row, the precious metal is starting to enter a long-term uptrend. He also adds that price action on the monthly chart creates a significant long-term bull flag. In this context, Cordova makes the following statement:
My main target right now is $1,850. My first goal will be for gold to close there by the end of December. Ultimately, I have a long-term technical target of $2,750 if the gold price can rebound above $1,913 and close there on a monthly basis.
End of November so time to look at some monthly charts. Let's start with precious metal porn. Uhhh… ok here's #gold. Long way to go for the breakout, but is that a giant ass bullflag I see on $GC? pic.twitter.com/ryWKMQcmnc
— Julia Cordova✨ (@CordovaTrades) November 30, 2022
“Even if it falls in the short run, the building is solid in the long run!”
Alongside the technical picture supporting long-term gold prices, Cordova says the precious metal has some solid fundamental support whether or not the US economy enters a recession. However, the analyst does not pay much attention to the fundamental factors. He notes, however, that a recession would bolster gold as investors seek to protect their wealth. At the same time, according to Cordova, the yellow metal remains attractive as an inflation hedge, even if the US economy hits a soft landing. The analyst uses the following statements:
It is possible that gold prices will definitely fall in the short term. However, I see this dual long-term potential building.
Critical level for gold price: $1,850
Cordova adds that although gold sees bullish potential, it is essential to wait for the appropriate breakout. For this, he pays attention to the monthly movement above $1,850. It records the following:
I see this level as an important turning point. A move there puts gold on the radar for a long-term move.
The analyst says he sees closer technical potential in the mining industry outside of gold. He states that this is the long-standing VanEck Gold Miners ETF. He notes that in mid-October, the GDX closed above its nine-week moving average for the first time in six months. In this regard, he makes the following statement:
It was a big event. Since it’s on an upward trajectory and has crossed the 20-week (moving average), we’ve seen an even bigger spike.
cryptocoin.com As you follow, the current rally of gold is creating some momentum for the veteran producer ETF. However, Cordova says there could be a strong resistance just above $30 as this area represents the 50-week moving average.
