Recent dips in gold futures prices have been well supported around the $1,800 level. Value is more of a range than just one specific price, so it’s entirely possible that a dip reaches levels closer to $1,785 before buyers get more aggressive. The uptrend remains firmly intact at $1,785. With the Fed’s easy money policy gold prices are likely to remain well supported for the next six to twelve months or longer. Global Central Banks, specifically China and India are buying gold. If your intent on being an economic super power then you better be able to back it up with gold holdings similar to what the U.S. is holding. China is holding roughly 33% as much gold as the U.S. That’s an embarrassing level for the Chinese.
Just look at a weekly gold chart! There’s only been one meaningful correction since September 2018, and that’s because of a global pandemic called COVID 19. The gold rally is still alive and kicking. There is no loss of momentum and there’s no reason to doubt that gold will breakout above it’s all-time highs. December gold futures have already put in a contract high of $1,857 on July 8th. I think that this time around, talking about $2,000 gold is not so crazy. It’s way to early to talk about inflation, however, that will be gold’s next chapter in good things to come for precious metals.
