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 members.
We wrote an extensive gold market update yesterday, and shared some 6 exclusive gold market charts. This update is available to our premium members.
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 6 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 pct 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 6 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, even though endlessly.
