The price of gold appears to be steadily rising again after managing to hit a low recently. The $ 2.000 to $ 2.500 price targets are very much at stake in December, with a $ 3.000 chance not out of the question.
There are a few factors to consider that once again highlight Gold's status as a hedge king and safe haven. From the collapse of the high-risk market of Bitcoin and cryptocurrencies to the decline in US yields due to the presented $ 6 trillion budget, gold could be in high demand again.
After hitting its all-time high of $ 2.075 recently, the price is still moving enough to see development halted and with a small spike, he expects Kim Chua, PrimeXBT analyst.
After bottoming out at $ 1.680 with a double bottom, the price of gold has steadily risen in a channel, with the potential to reach $ 1.930 before a brief consolidation. With U.S. yields falling and Biden's new $ 6 trillion budget for the year 2022, the fundamental scenario is strong for gold to rise in the second half of this year, with a good chance of surpassing its $. 2.075 ATH.
BTC's recent reversal is also favoring gold, with some conservative investors thinking that BTC's volatility is too much to support a return to gold. This will help gold regain its narrative of being the best store of value and hedge against inflation. Some central banks have started hoarding gold again after a hiatus since August last year. The weekly gold chart has already broken out of its 8-month consolidation and is poised to recover another $ 700 to $ 1.000 in the next 6 months. I expect the price of gold to reach between $ 2.500 and $ 3.000 by the end of this year due to this breakout.
About Kim Chua, Principal Market Analyst at PrimeXBT:
Kim Chua is an institutional trading specialist with a successful track record spanning major banks including Deutsche Bank, China Merchants Bank, and others. Over time, Chua has launched a hedge fund that has consistently produced triple-digit returns for seven years.
Chua is also an educator at heart who has developed her trading curriculum to pass her knowledge on to a new generation of analysts.
Kim Chua closely follows traditional and cryptocurrency markets and is eager to find future investment and trading opportunities as the two very different asset classes begin to converge.