{"id":1199645,"date":"2020-08-04T10:58:51","date_gmt":"2020-08-04T15:58:51","guid":{"rendered":"https:\/\/www.mining.com\/?p=1031648"},"modified":"2020-08-04T10:58:51","modified_gmt":"2020-08-04T15:58:51","slug":"gold-price-rally-testing-2000-hurdle","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1199645","title":{"rendered":"Gold price rally testing $2,000 hurdle"},"content":{"rendered":"

Gold\u2019s mega rally took another upturn on Tuesday as it begins to test its next major hurdle of $2,000 ounce.<\/p>\n

Spot gold advanced 0.8% to $1,992.63 per ounce by 11:30 a.m. EDT, after reaching an intraday high of $1,993.75 earlier.<\/p>\n

Bullion has surged 30% so far this year to a record high and is one of the best-performing assets in 2020 as a result of increased safe-haven demand during the coronavirus pandemic.<\/p>\n

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Bullion has surged 30% so far this year and is one of the best-performing assets in 2020<\/p>\n<\/blockquote>\n<\/figure>\n

Investors are driven by the belief that the metal will hold its value better than other assets as fallout from covid-19 ripples through the global economy.<\/p>\n

In the US, the worlds’ largest economy, central bank stimulus has pushed inflation-adjusted bond yields to record lows, making non-yielding gold more attractive. The dollar has also weakened sharply, making bullion cheaper for buyers with other currencies.<\/p>\n

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Gold’s current rally towards $2,000 is facing a fierce technical resistance, but an eventual break above that level is likely, freeing prices for more record highs, technical analysts told Reuters<\/a><\/em>.<\/p>\n

“The never-before-reached $2,000\/oz is a major psychological resistance level, with gold\u2019s 49-year trend channel resting just below it at $1,983,” said Commerzbank technical analyst Karen Jones<\/a>. <\/p>\n

“Only an end-of-month or, better yet, end-of-quarter close above these levels will signal a break from the channel,” she added.<\/p>\n

However, because the rally has been so fast, a downward correction is likely and could be brutal, analysts said, before the market attempts another stab higher.<\/p>\n

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Early support is coming in around its 20-day moving average at $1,875 and the bottom of its 4-month uptrend around $1,830.<\/p>\n

“Below that is more powerful support at the 20-week moving average, currently at $1,755,” said Tom Pelc, an independent technical analyst formerly at Nomura and RBS.<\/p>\n

Such a fall would not necessarily equate doom the longer-term uptrend, analysts posited.<\/p>\n

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\u201cWe continue to see this improving volatility backdrop, so there\u2019s no sign that the long-term trend is changing,\u201d said Richard Adcock, a former UBS and now independent technical analyst. \u201cThe market can carry on higher than people expect.\u201d<\/p>\n

If resistance is broken, Fibonacci extensions offer short-term targets. These are based on the idea that a rally will extend in predictable proportions extrapolated from a previous rally. <\/p>\n

“One is at $2,067, another comes in at $2,286,” said Pelc. <\/p>\n

“Lucas ratios \u2014 a tool using a sequence of numbers similar to Fibonacci\u2019s \u2014 suggest gold could rise to $3,598.80 an ounce in 4-5 years,” he added.<\/p>\n

(With files from Reuters)<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

An eventual break above that level is likely, analysts believe, freeing prices for more record highs.<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[2849,949,369],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1199645"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1199645"}],"version-history":[{"count":5,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1199645\/revisions"}],"predecessor-version":[{"id":1199777,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1199645\/revisions\/1199777"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1199645"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1199645"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1199645"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}