Wed, May 22, 2024

The price of gold could reach $ 2,000 in 2020

Gold prices today fall for first time in three days

The price of gold has dropped in April and has risen 9% in the first two weeks of the month. Respected market analysts now believe that the yellow metal may hit $ 2,000 this year in a specific bullish chart pattern that has developed in recent weeks.

Spot Price of Gold Backed by U.S - Wibest Broker

Don’t buy gold now, suggests Baruch

Bill Baruch, president of the American company Blue Line Capital, believes that gold can continue to win for the rest of the year. The yellow metal is on track to register the best month since 2011.

Barush said that little gold is needed to keep in the wallet. The charts show a beautiful inverse head and shoulders technical pattern that developed during March and April. The precious metal broke above it now, Baruch said. It is a sign that the price action has finished moving down and is likely to move up in the future.

Barush thinks that gold will hit $ 2,000 for the rest of this year. The massive liquidity injected by the Federal Reserve will support the prices of assets such as stocks, but it will also support gold.

Baruch gives investors interested in buying the metal a piece of advice to expect a possible pullback to $ 1,700, which is around $ 16 lower than the current gold price.

You have to go higher but look for a pullback to $ 1,700 as your buying opportunity, said Baruch.

Steve Chiavarone, a portfolio manager at Federated Hermes, claims the opposite. He says the rush to safer assets such as gold could weaken as markets stabilize.

Chiavarone states that the metal has no cash flow. It’s a bit of a gamble to understand what the demand is going to be. Since the economic growth fell off the cliff, it’s logical that gold is performing well. Central banks launched unprecedented stimulus programs, and uncertainty is high. However, we are heading into a period of healing. Over the long run, stocks are a better bet than gold since the market is going to recover eventually, he said. 

The metal Price Points Higher

The inverse head-and-shoulders pattern seems quite asymmetric since the two shoulders are nowhere near the same level. Still, the model kicked in when the gold price broke above $ 1,620 last week and reached the peak.

Gold jumped to its highest levels since 2012 yesterday when it hit the 78.6% Fibonacci retracement, a critical short-term target for the bulls. We can now expect a minor pullback as buyers regroup before attempting to complete the reverse head-and-shoulders pattern on the next higher leg.

The price of gold is up 9% this month due to worsening risk sentiment. Bill Baruch believes that gold may hit $ 2,000 this year, as the bullish chart pattern signals a move to at least $ 1,840.

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