The author of the book “Gold and Silver: The Greatest Bull Market Has Already Begun” and technical analyst Jordan Roy-Byrne noted on Wednesday that the gold bull market is still in its early stages.

After the second-largest breakout in history in March 2024, the gold market saw its first significant correction.

For many investors, a correction after a sharp rise often causes concern. But in a long-term bull market, corrections are not only normal—they are absolutely necessary.

Jordan notes that historical experience shows that the current correction in gold may be only a short-term pause before the next major rally. By analyzing past breakouts, market cycles, and the macroeconomic environment, we can forecast the potential movement of gold and silver in the coming years.

Historical breakout in gold and its first correction
According to Jordan’s analysis, gold is currently undergoing its first medium-term correction since the powerful breakout that occurred about two years ago. Similar historical breakout levels have always triggered a prolonged and strong rise in prices for precious metals.

Two historical periods stand out especially for comparison: the breakouts of 1973 and 2024. Both phases led to a two-year sustained increase in gold prices.

In the 1973 cycle, after a significant rise in gold prices (comparable to the move toward $6,000 during this breakout), there followed a 28% decline.

The current correction is very similar: the price of gold has now fallen by about 27%. The scale of the decline matches historical examples, but in terms of timing, the correction has not yet run its course.

If we look at longer-term analogies (including the 2005 breakout), the current gold trend still indicates potential to reach $7,000 by 2027.