Jeff Gundlach: Gold to Spike 30% to $1400
Jeff Gundlach is predicting Gold could spike this year.
I agree with him but I’m not sure Gold has bottomed. It could drop below $1000/oz and test strong support around $970/oz or even quarterly support at $930/oz.
If Gold is going to make a strong rebound in line with historical rebounds then how much could it rebound this year?
In the chart below we choose a starting point or weekly low of $970/oz (which gives Gold room to go lower during the week) and from there plot the average of various rebounds in Gold. If Gold were to follow the average of the 2008 and 1976 recoveries then it could exceed $1300/oz and come close to $1400/oz by the end of the year. History suggests it could definitely rebound 30% but getting to $1400 would be tough if it goes below $1000/oz as we expect.