Gold has pulled back from its recent all-time high of more than US$2,400 per ounce, but remains elevated.
‘We are in the real sweet spot for what is the biggest breakout for gold in the last 50 years,’ he said during the interview. ‘This is the time where a lot of the hyperbolic statements that people like me make, and have been making for the last three or four years — this is the time where it’s really ripe for those things to actually play out.’
When asked about gold’s upside and downside potential in 2024, Roy-Byrne was optimistic.
‘You had this 13 year super bullish cup and handle pattern, and so the market was really set up where if you could just get enough buying to push it above US$2,100 that could carry beyond that pretty quickly,’ he said.
Within that 13 year cup and handle he sees two potential mini cup and handles, which have measured upside targets of US$2,350 and US$2,500. The overarching cup and handle has its own measured upside target of around US$3,000.
‘(So) maybe we have a chance to get to US$3,000 by the end of the year,’ Roy-Byrne suggested, although he emphasized that there may be variation depending on how various factors play out.
On the other hand, he noted that gold has had six or seven major breakouts during its history, and in two of those cases it fully retested its breakout level. This time around, that would be US$2,100. Roy-Byrne thinks in that type of scenario it’s possible gold could drop to US$2,150 or US$2,120, but emphasized that he doesn’t think it will happen.
Watch the interview above for more of his thoughts on gold as well as silver in 2024.
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.