Graceland Investment Management Company Chairman Stewart Thomson stated that the bull market flag and reverse H&S pattern on the closing chart last week indicate that the gold price may rise to $2800, $3000, or even as high as $3300 before a major pullback occurs. He pointed out that the weekly chart for gold key indicators rarely stay above 90 for a long time, but currently they are at that level.

Stewart mentioned that some Asian fund managers have increased their recommended allocation of gold investment from 15% to 20% to 25%. "This is good news, as printing money ringing alarms for Asian citizens to buy more gold. In India, the trend of buying gold online through companies like Amazon is emerging, and this demand may form a trend in the coming years."

He mentioned that all gold investors should consider setting a personal threshold, the minimum percentage of their net assets to hold gold. He further emphasized: "Nothing is forever linear in its rise or fall, and the US dollar and gold are no exception. As the gold price approaches the key $3000 mark, the likelihood of a major pullback ($100-200) increases."

"The good news is that this pullback will provide an opportunity for investors holding a small amount of gold to increase their holdings."

mentioned the US Dollar Index, statingRSIboth the stochastic indicator show positive divergence in prices and appear at the critical integer level of 100.

He predicted, "The US dollar may plummet below 100 significantly in the next year, but perhaps not before one final rally. Personal Consumption Expenditures (PCE) inflation report will be released on Friday, September 27, which is Federal Reserve Chairman Powell's favorite indicator to measure economic price trends."

He believes that the PCE inflation report to be released by the USA on Friday may bring huge fluctuations to the market, potentially signaling a short-term peak in the price of gold.

In terms of the USA stock market, the transportation sector continues to fail to confirm the continued rise of the industrial sector, with industrial stocks showing worrying relative strength decline after each new high.

He explained, "It is clear that the stock market has yet to reach a key buying area; the RSI and stochastic indicators on the monthly chart should both fall to the 50 region or lower, only then can the market be said to offer value to investors."

Stewart talked about the price of gold, stating, "The bullish flag and inverse H&S patterns on the weekly closing chart indicate that the price of gold may rise to $2,800, $3,000, or even as high as $3,300 before experiencing a significant pullback."

(Source: GoldSeek)

This is a snapshot of the stochastic oscillation indicators (14, 5, 5 series) on the key weekly chart of gold; it rarely stays above 90 for an extended period, yet it is currently positioned above 90.

(Source: GoldSeek)

He mentioned: "The previous major buying area for gold was in October 2023, which was almost a year ago. Since then, the gold/USD exchange rate has risen by over 40%. Obviously, a significant pause or pullback is likely to occur soon."

According to Elliott Wave analysis, gold is in a "C wave", which is usually the largest wave in terms of price movement and occurs in a very short time. The surge from the low point in October 2023 has all the characteristics of a C wave. Stewart concluded: "The upcoming pullback is unlikely to mark the end of the C wave; instead, the next movement may be the strongest gold rebound in the past 15 years." #goldTechnical Analysis#

(Source: GoldSeek)