GOLD will return to the upward channel
Updated
Gold price is falling. Some people are selling their available gold for cash, pulling the price lower (some parts of the globe have the economic crisis in full swing). Notwithstanding that there is a cup and handle being produced on the 5Y chart, due to the amount injected by the FED, Gold price is anyway limited downward to about 1.3 times the price before the pandemic, or ~ approx $1690. Unless there will be a new market crash (causing margin calls), gold should not go below this price). Right now, also the new president of the US is expected to maintain the dollar strong. But the pandemic's death toll in the US will soon surpass half a million, this will definitely have a strong effect on the economic stability of the whole globe, introducing again uncertainty. Unless US rolls back on the Chinese tariffs, GOLD price cannot go down. Thus I consider both GOLD and SILVER to very soon restart their upward movements. I predict a price of above 2000 by august.
Note
I found out hedge funds are decreasing their positions on paper gold (while physically buying everything they can). This is irrelevant long term. I increased my gold position, at 1680. Market may crash, if it does, then Gold price may drop too, similar to what happened in March. I think that 1550 is absolute bottom. I plan on buying small positions each time it drops.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.