𝐈𝐬 𝐆𝐨𝐥𝐝 𝐚𝐛𝐨𝐮𝐭 𝐭𝐨 𝐫𝐚𝐥𝐥𝐲 𝐨𝐫 𝐜𝐫𝐚𝐬𝐡&𝐛𝐮𝐫𝐧?
Gold has had a huge rally from ~ July 2018 through to July 2020; however over the last 6 months it has settled and returned to the previous high water mark (set in 2011). There is a reasonable bullish argument that this is the 'retest' prior to a fresh bounce:
If future US stimulus is not done in a well thought out way there could absolutely be a new wave of panic into precious metals. That being said, the acceleration of the COVID vaccine rollout could result in a return to normal at a faster rate that would reduce (or even negate) the need for continued stimulus.
In the short term, it seems more likely that we see a further fall in the price of Gold, and the descending triangle suggests that we may see prices as low as $1500 at some point in the mid term future. A failure of the $1800 support would be the trigger for such a scenario to play out.
Gold has had a huge rally from ~ July 2018 through to July 2020; however over the last 6 months it has settled and returned to the previous high water mark (set in 2011). There is a reasonable bullish argument that this is the 'retest' prior to a fresh bounce:
If future US stimulus is not done in a well thought out way there could absolutely be a new wave of panic into precious metals. That being said, the acceleration of the COVID vaccine rollout could result in a return to normal at a faster rate that would reduce (or even negate) the need for continued stimulus.
In the short term, it seems more likely that we see a further fall in the price of Gold, and the descending triangle suggests that we may see prices as low as $1500 at some point in the mid term future. A failure of the $1800 support would be the trigger for such a scenario to play out.
