The next peak of original gold? $2500!

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This is the recent question raised by many people during the crash on Tuesday, August 11. The price of gold once collapsed by more than US$110 on Tuesday, marking the biggest one-day drop since April 2013. At the same time, the price of silver plummeted by 15% on Tuesday, the biggest drop since October 2008.

This is quite tragic, even the big non-agricultural data released by the United States last Friday did not have such a big drop. It was a bit too sudden and it was hard to prevent. This is also the reason why the trend of gold is relatively fierce and unpredictable. Coincidentally, just last week, when the big bull market for gold was re-expanding, many people lined up to buy gold. As a result, , Just after reading it, gold plummeted.

However, this time, gold fell sharply by $110, does it mean that gold is over? On the contrary, the sudden sharp drop in gold may be due to a smooth and rapid deep wash after the rapid long-term rise of gold, which is to prepare for a better rise.

This similar view has already appeared in the market. Blue Line Futures chief market strategist Phillip Streible said: “This round of decline is a healthy correction. It allows more people to enter the market, so the price will rebound again. By the end of this year, we We will see new historical highs. The price of gold may reach US$2,500 per ounce and the price of silver will reach US$35.”

He said: “The fundamental factors supporting the price of gold have not changed. The Fed will maintain a dovish stance for a long time. They have said that they will allow inflation to exceed their target.”

Indeed, just after the sharp drop in gold, Wednesday ushered in a technical rebound. Gold once broke through 1900 and dropped to $1,880. The Jedi counterattacked and formed a deep V reversal pattern. It continued to rise sharply on Thursday, and it is currently in a shock uptrend on Friday. situation.

For this wave of gold plummet, at most it may be a profit-taking situation, and there is no substantial bearish situation. At most, it is a technical correction state. Due to the phenomenon of excessive overbought gold, there is a wave of rapid killing, falling situation.

In other words, at present, gold is difficult to fall and easy to rise. As soon as the fall is over, it is immediately repaired.

The bull market of gold, it should be said, to some extent, it may be difficult to end.

The first is that the global epidemic is still ongoing, and the monetary policy stimulus of various countries will not be easily tightened. The proliferation of currencies and rising inflation will make more people willing to buy gold to fight inflation.

Second, changes in the global geopolitical situation are becoming more and more complicated. In the past, tensions between the United States and Iran were mainly in the Middle East now the addition of the Asian region and tensions between China and the United States will push up the price of gold.

Third, the current global economic situation is in a downward trend, and it is difficult to return to the state of the 2019 epidemic. The global economy is weak, and gold has become a better safe haven.

After violent fluctuations in the previous few days, the price of gold is currently trying to gain a foothold. On Friday, the price of gold climbed slightly above $1,950, repairing some of the room for the previous decline. It will take time to verify whether gold can once again stand firm and hit $2,500. I am afraid it will take longer to observe.

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Digital Nomad

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