Gold: Where to From Here
Gold has rocketed to all time highs in 2020 which is no surprise to PSE subscribers.
Key points in this 2013 paper include:
- Gold exhibits similar 30-year patterns to other commodities. Price action from the 1980s and commodity prices in the 1950s and 1920s suggest that gold may see some near-term upside (or support within a trading range) into 2014 but is likely to fall thereafter.
- The end of the decade (into 2019) could see a rise in gold prices.
- Key technical levels to watch: a break of the 1180 level to the downside; a test of the 1490 midpoint between 2012 high and June 2013 low; and a test of the 1800 level (4th attempt). A near-term break of 1200 would be bearish for gold. However, any successful support at 1200 after a possible near-term run to the upside could pave the way for a strong move into the end of the decade.
- It is possible that any Fed tapering and raising of interest rates would be bearish for gold.
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