Let's look at the weekly chart of gold:
1) a head and shoulders technical pattern appears on the chart of gold price: a bullish signal
2) next week will be crucial to see whether gold price can stay above $1000. If yes, I expect further strength and my expected target price is around $1200 for the next few months.
3) several fundamental elements are pushing gold price:
- expanded balance sheets of central banks, i.e. new money creation, leading to fear of inflation
- gold price is in US dollar and the US dollar is falling against other currencies due to increasing concern about its status as worldwide reserve currency
- China is buying gold in large quantities and even encourages its own citizens to buy gold
No comments:
Post a Comment