Each breakout in gold generates roughly a 15% gain before the next intermediate correction (a pullback lasting 6-12 weeks). The target zone for this intermediate rally should be roughly $3150-$3200
That doesn't mean we won't have smaller degree corrections along the way, we will. We may have to weather one here at $2900 and almost certainly there will be a 5-10 day pullback once gold reaches $3000. But there is still plenty of upside potential in this rally especially if one is using some leverage.
Zoltan is a prophet. This is what he wrote in 2022: “Russia's decision to link gold to oil could bring gold back as a settlement medium and increase its intrinsic value sharply. Banks active in the paper gold market would face a liquidity shortfall, as all banks active in commodities tend to be long OTC derivative receivables hedged with futures (an asymmetric liquidity position). That's a risk we don't think enough about and a risk that could complicate the coming year-end turn, as a sharp move in gold prices could force an unexpected mobilization of reserves (from the o/n RRP facility to banks) and expansions in balance sheets (SLR) and risk-weighted assets. That's the last thing we need around year-end. Basel III was designed to keep banks from doing things that could hurt them, but as the mini-budget has shown and Russia's response to the cap might show, Basel Ill won't protect from states doing things that could end up hurting banks.”
