Gold has been on an epic run over the last few months. Since it was able to breakout out of the 7+ year sideways consolidation back in early June. The price hasnt looked back. The last few weeks has seen Gold pull back off its 2019 highs as it consolidates the big moves. Recently the $1,488 support was tested however was able to hold just above it.
Last week Gold finished at close to the high's of the week as volatility returned to both stocks and bonds on Friday helping lift Gold back to $1,516. Looking ahead for the price action, the strong uptrend is looking bullish for the medium to long term for future price gains for the metal.
On a shorter time frame I'm expecting a further consolidation / sideways range for a few more weeks above $1,488 level of support, as the 52 weekly moving average (green line) can catch up some of the distance its made with the strong three month rally. Of course my expectations for further consolidation ahead is based on no global flare ups that could see another massive move in the price of Gold. For example if the Repo overnight funding market in the US worsens and the spreads start to spike again then its possible we could see Gold move back to the 2019 highs in the next few weeks.
Assuming there isn't any such events on the financial markets and Gold has had a chance to consolidate further in a sideways range of prices, then I would then expect to see a move some time in October towards $1,560 resistance.
On a longer term horizon for Gold for the remainder of the year I expect Gold to make new 2019 highs as it gets closer to its old record highs around $1900. Given the growing use of QE from Central Banks to tackle the slowing global economy I expect Gold to make new nominal highs and take out the old high in 2020. However for the short term we need to be more patient as we get much needed consolidation for the next leg higher.
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