Gold Exceeds $ 1,850 Dollars. Could it Reach $1,900? | Empirex Capital

Gold Exceeds $ 1,850 Dollars. Could it Reach $1,900?

Gold has finally gotten past the $1,850 barrier, nearly two weeks after its return to $1,800 pricing. While $1,900 is the next target, of course, gold's recent struggle to clear a mere $50 passage required some asking. So how long will it take this time and will it fail this test?

As Canadian life/business coach Rick Scott emphatically said: “Anything is possible, everything is not”.

In gold’s case, this could be interpreted to mean some more tough trials lie ahead. But the present set up and momentum it is riding will also likely prevent it from being stuck at the $1,850 level too long, without a serious attempt fairly quickly for $1,900 and above.

Most importantly though, is whether it will leverage all the expectations of inflation that have been building across the US economy and financial markets for weeks now, to make a renewed push toward the highs above $1,960 it left off in January, or possibly even the peaks above from August.

Since its return to the $1,800 berth on May 6, gold futures on New York’s COMEX have been on an upward—though admittedly muddled—path that finally led to the breakthrough peak of $1,855.85 at the time of writing, in Monday’s Asian trading.

Next $50 Climb Extremely Crucial Given its trajectory, the next plausible target should be $1,945.70, which will be a peak not seen since the Jan. 6 intraday of $1,966.80.

Still, anyone who has traded or followed gold over the past six months will know that a $90 upside could be a bridge too far for the yellow metal in short order. Therefore, setting the bar at $1,900 (which comes on the chart at just under $1,945.70) might be wise.

All will depend on whether the next $50 climb is attainable for gold. Otherwise, Investing.com’s signals on the 3-year weekly chart show a very likely return to below $1,800 levels—precisely $1,789.80, erasing all gains since May 6.

But if gold indeed crosses $1,900 and $1,950 next, it means sentiment in gold isn’t about to recede meaningfully. That means that $2,000 could be on cue, precisely $2,101.60—which comes just slightly beneath the all-time COMEX futures peak of 2,107.60 set on Aug 7.

Will There Be Measured Moves Instead?

Sunil Kumar Dixit of S.K. Dixit Charting concurs with Investing.com’s 3-year weekly readings for gold, though his immediate projections call for more measured moves within the $1,860 to $1,880 channel.

Plotting the likely path for spot gold or bullion, Dixit said descending 200-Day Simple Moving Average of $1,844 has provided strong support to clear $1,850 and possibly $1,855

Created on 21st May 2021

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