Gold has been on an incredible bull-run throughout 2019, with the precious metal surging over 16%, so far this year.
Finally, gold has started to show signs of a much needed healthy correction following its impressive rally since the beginning of January.
Gold has been in an upward trend since touching a yearly low of $1,265 an ounce on the back of global uncertainty and central bank actions. The acceleration of the global economic downturn and interest rate cuts by central banks world-wide has propelling the precious metal toward six-year highs.
For the past seven days, gold has been trading within a tight range. In fact, since October 11 – every day, gold prices have been winding tighter and tighter. This ultimately indicates a big move is on the horizon. The only question now, is which way.
Looking ahead, only a resolution of global macroeconomic issues like the U.S-China trade war, Middle East tensions and Brexit could slow down gold’s upward ascent. The possibility of these global challenges fading anytime soon is unlikely. Therefore, whilst the fundamental backdrop for gold remains extremely bullish in the long-term – a smart move in the short-term is to trade the range and routinely take profits off the table!
Where are commodity prices heading next? Watch Phil Carr at The Gold & Silver Club review Gold with the latest price forecast and predictions:
Trading has large potential rewards, but also large potential risk and may not be suitable for all investors. The value of your investments and income may go down as well as up. You should not speculate with capital that you cannot afford to lose. Ensure you fully understand the risks and seek independent advice if necessary.