As long as gold is above 1950, it still has a chance for $2000

14 באפר׳ 2022

For various reasons, gold still has the opportunity to test $2,000. If you notice the movement of gold, you will see that the tendency to rise is higher than dropping the gold price.

There are many reasons behind the gold's upside bias.

1. Inflation has risen worldwide
2. Economic growth is declining
3. Russia-Ukraine war
4. Demand for Gold as a Safe Haven
5. New variations of Corona

Apart from these, there are many other reasons behind the rise in gold prices. But there is a thing called prize action. Nothing in the world can be more expensive than oxygen.

So the price action thing works for all assets. And because of price action, profit-taking is done at different rates, the uptrend market corrects down the side, and then the downtrend market corrects the upside as well.

Since gold has been overpriced based on the RSI, the correction is slightly expected to the downside. But as long as the gold price is above $1950, it is more likely to be in long-term buy mode.

There is a minor resistance from the current rate at $1982. If the gold price can break above $1982, gold will probably go straight to $2000.

Since the Fed will raise the bank rate next month, FED's higher bank rate is a big obstacle for the higher gold prices, and gold may drop a bit as an advance price-in. But ultimately, gold is in an uptrend and has the most possibility to test $2000

However, unless most of the issues mentioned above are resolved, gold may not wear out very much. So as long as the gold price is above $1950, the chances are high that it could test $2,000.

Gold, however, could drop if the situation improves. If the gold is stabilized below $1940, it can test the 1920/1918 price. And down to the latest target of $1890/180.

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