Gold is setting up a launch pad for a major leap into bull territory with its recent trading patterns according to an internationally recognised expert in bullion.
Chris Vermeulen, who is a technical analyst, trader, and author says an analysis of the data suggests that gold is in a period of consolidating support. He compares this to similar activity registered in the second quarter of last year; something which preceded enormous gains which swept the precious metal to all-time highs later in the summer.
The current scenario sees gold building support at a major bottom and from there, taking off for a stellar upside which Vermeulen suggests would see the yellow metal registering a series of price firsts over the course of the next few months.
He explains, “The rally in cryptos, particularly Bitcoin, and various other stocks have raised expectations that gold … [has] been overlooked as a true hedging instrument. As these rallies continue in various other stocks and sectors, gold …[has] continued to trade sideways over the past 6+ months.
“My research team and I believe the recent downside trend in gold has reached a support level, near £1,261 ($1,765), that will act as a launching pad for a potentially big upside price trend. This support level aligns with previous price highs (May 2020 through June 2020) after the Covid-19 price collapse, which we believe is an indication of a strong support level. If gold price levels hold above £1,261 ($1,765) then we feel the next upside rally in metals could prompt a move targeting £1,543 ($2,160), then £1,714 ($2,400).”
With experts repeatedly advising investors to buy the dips over the course of the last 12 months due to the enormous upswings gold has been registering, now is an opportune moment to buy in order to be in the best possible position when the bull run reignites.