1. Starting point: The 2015 low of $1,045.40
2. Reference high point: The mid-2020 high of $2,078
The ratio between them: $2,078 / $1,045.40 = 1.988
Now, let’s raise this ratio to the power of 1.618: 1.988^1.618 ≈ 3.03
Then, to find our target price: $1,045.40 x 3.03 ≈ $3,167.56
That gives us $3,167.56, which rounds to the $3,167 target shown on the chart.
Having said that, let’s move to what the markets are providing us with today.
The ADP Nonfarm Employment numbers were much better than expected, but it doesn’t seem that anyone is paying attention to that. Instead, everyone is holding their breath awaiting Trump’s comments on tariffs. Since they are scheduled right when the markets close, today’s session can be described as “peak uncertainty”.
This might also mean “peak gold” as gold serves as the safe haven. The way miners and silver perform today confirms this (just as the previously mentioned long-term Fibonacci-extension-based target does).
