The gold price is considered a safe haven in these ultra volatile times. On Friday February 28th, 2020 there may have been a flash-crash in the price of gold but as said in Gold Price Hitting Decent Support After Mini-Crash there was no damage done on the chart. This week we got a confirmation of our viewpoint. So far it looks like 2020 is set to take out our Gold Price Forecast for 2020 and 2021, and our 2021 may be met already this year.
Gold is in a perfect uptrend.
In order to come to this conclusion we need to have its chart perfectly right. Now that’s exactly what we constantly do, day and night: adjusting charts so we can understand their message.
The gold price daily chart is absolutely beautiful:
- Last summer there was nice uptrend.
- It peaked *exactly* at our projected price target as per our gold forecast (written one year earlier): 1555 USD.
- A perfect reversal pattern which resulted in a bullish breakout.
- The perfect test of 1575 USD which was not just our projected price target for 2019 but also was critical support in the period 2011/2012/2013.
- Last week a successful test of 1575 USD, and the mini crash did not violate this level.
- A perfectly rising channel is the current setup, and the result of all of the above.
Why do we believe that gold will continue to rise?
Because of the ultra low interest rate environment which is always gold price friendly. Moreover the Euro did break out last week, and will confirm its breakout this week. Both markets (rates + Euro) are leading indicators as per our gold price forecast(s).
