Way to Gold! The gold has once again broken new high and reached 1779, a level not seen in more than 8 years.
As high as gold already was, the demand for safe-haven asset continued to rise through the pandemic.
There are so many reasons - the unprecedented printing of money (i.e. bond purchases), the super low-interest rates which will last for a couple of years, and of course the uncertainty of the pandemic and the recent surge in COVID cases in the US.
Historically speaking, the most recent financial epidemic in 2008 has clearly shown us just how much can gold climb while the economy is trying to recover from recessions and depressions.
So, just in case if you're thinking that the gold is over-valued, it's probably more like 'undervalued'.
The break of a new historical high could very well be the beginning of the rise of gold price.
However, it's likely inevitable that strong resistance will be faced the nearer price gets to the historical high of 1920, and before that, the near 9-month supply zone just right ahead.
As of now, gold should have a smooth journey ahead to climb further, at least not before it reaches 1810.
As high as gold already was, the demand for safe-haven asset continued to rise through the pandemic.
There are so many reasons - the unprecedented printing of money (i.e. bond purchases), the super low-interest rates which will last for a couple of years, and of course the uncertainty of the pandemic and the recent surge in COVID cases in the US.
Historically speaking, the most recent financial epidemic in 2008 has clearly shown us just how much can gold climb while the economy is trying to recover from recessions and depressions.
So, just in case if you're thinking that the gold is over-valued, it's probably more like 'undervalued'.
The break of a new historical high could very well be the beginning of the rise of gold price.
However, it's likely inevitable that strong resistance will be faced the nearer price gets to the historical high of 1920, and before that, the near 9-month supply zone just right ahead.
As of now, gold should have a smooth journey ahead to climb further, at least not before it reaches 1810.