Gold At All Time Highs: The End Or The Start Of Gold’s 2020 Rally?
Gold closed the week as well as the month of July of 2020 at all-time highs. Is this the end of the rally, and a major double top? Or is it the beginning of a powerful continuation of the uptrend? One thing is clear: our bullish gold price forecast for 2020 was accurate, but the market ‘crushed’ our forecast.
We can talk a lot about the gold market. We did so in our weekend update to our premium Momentum Investing members.
We wrote an extensive gold market update yesterday, and shared six exclusive gold market charts. This update is available to our premium members (sign up here).
We will pick out just one chart that makes the point: the monthly gold price chart. See below.
What does this chart tell us?
After a giant reversal that took six years to complete (2013 – 2019) gold started a new upleg. If you think about it gold broke out around 1400 USD, tested it during the Corona crash lows, and is now trading 40 per cent higher.
Let’s see this in perspective, and the long term trend (chart) can help us with this.
Gold did rise 10-fold between 2001 and 2011. Gold took six years to complete a giant reversal. Gold rose 40% in one year after this reversal.
This recent rise cannot be the end. There may be a consolidation around 2,000 USD, or not, but this not likely going to be the end.
Moreover, gold price drivers like fundamentals and market technicals suggest there is more upside potential.
We laid out a very clear path for gold for the next months in this exclusive gold market update sent to our Momentum Investing members. Moreover, in our Momentum Investing portfolio we took a gold position this week, and is still worth taking unless the gold market drops seriously next week (not likely). Note that we also flashed a buy signal on a shorter term silver price trade in our Trade Alerts portfolio, and took a 16% profit in less than 2 weeks. We make open another silver position if our method flashes a buy signal.
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