Trader who predicted gold’s bullish rally sets new price target

Gold has surged past expectations, reaching $4,000 per ounce faster than anticipated, according to Gary Wagner, editor of TheGoldForecast.com.

Originally projecting a peak of $3,800, Wagner observed the precious metal’s swift climb from $3,600, describing the move as nearly unstoppable, he said in an interview with David Lin published on October 11.

Wagner noted that over the past few weeks, gold’s price action has shown unprecedented momentum. Small incremental gains in early September gave way to dramatic movements as the rally accelerated. 

By late September, gold hit a record high before briefly retreating to just below $4,000, indicating the current resistance level.

Gold key price levels to watch 

Looking ahead, Wagner set a new upside target between $4,100 and $4,200 should the rally continue. While he anticipates the possibility of a correction following this historic parabolic surge, he does not expect it to last long.

“Upside potential to me is anywhere between $4,100 and $4,200 if it continues to move up. I don’t think that if we get a correction, it will be long-lasting in terms of time, but it could be a fairly deep correction,” Wagner said. 

He pointed out that the recent trajectory, from $3,300 in mid-August to $4,000 today, highlights one of the strongest gold rallies in recent memory.

The trader added that technical analysis reveals consecutive green weekly candlesticks, signaling persistent upward momentum. However, the exaggerated highs of the most recent weeks suggest the market may be due for a temporary pullback before testing new highs.

It’s worth noting that gold’s record-breaking year has found new strength in the wake of the ongoing U.S. government shutdown, as investors seek safe-haven assets. 

Indeed, the yellow metal has not come without warning signs, with buying pressure showing signs of exhaustion, as momentum indicators such as the Relative Strength Index have reached historical highs. However, a section of Wall Street remains bullish on the commodity’s outlook. 

The metal ended the last session at $4,016, with year-to-date gains of 53%.

Featured image via Shutterstock