A few days ago we wrote about the Mysterious Channels On Gold’s Chart As 2020 Kicks Off. It took some 24 hours for this channel mystery to sort itself out. Gold clearly decide to move higher, and choose the bullish channel. This means to us that our gold price forecast for 2020 and 2021 is in full force now, and in the next few months we might see $1750 being achieved as our 2020 target. However, this $1,555 level will be the first challenge to overcome.
It is hard to believe to most but gold is in a new bull market, and not because of fear.
Gold is not rising because of fear. This does not make sense whatsoever with stock markets trading at all-time highs and the Russell 2000, the ultimate risk barometer, breaking out to all time highs.
There is a totally different reason why gold is rising.
When it comes to gold’s chart it is clear that this grey channel has become the dominant trend for now. Resistance comes in right above current levels, but looking at the slope of the channel it is rising fast. So in a few months resistance will be way above $1,600. We do not exclude to see $1,700 in this channel by the end of April of 2020.