• 2 minutes California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 6 minutes China and India are both needing more coal and prices are now extremely high. They need maximum fossil fuel.
  • 11 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 6 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days The Climate Scare Stories Began With Far Left Ideology Per GreenPeace Co-Founder
  • 9 mins NordStream2
  • 19 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 21 hours Biden Sets Target Of 50% EV Share In U.S. Car Sales In 2030
  • 22 hours US intel warns China could dominate advanced technologies By NOMAAN MERCHANT October 22, 2021
  • 3 days Putin and Xi have decided not to attend the Climate Summit in Glasgow
  • 3 days "The Hidden Story About California's Container Ship Backlog" via Corbett Report
  • 2 days Storage of gas cylinders
MINING.com

MINING.com

MINING.com is a web-based global mining publication focusing on news and commentary about mining and mineral exploration. The site is a one-stop-shop for mining industry…

More Info

Premium Content

Gold Soars Above $2,000 On Pandemic Fears

Gold’s mega rally took another upturn on Tuesday as it surpassed another major hurdle at $2,000 per ounce.

Spot gold advanced 1.4% to $2,004.97 per ounce by 3:20 p.m. EDT, after reaching an intraday high of $2,009.20 earlier.

Bullion has surged more than 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.

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.

In the US, the world’s 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.

Gold breakout

Source: Reuters

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

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

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.

Source: Reuters

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.

“Below that is more powerful support at the 20-week moving average, currently at $1,755,” said Tom Pelc, an independent technical analyst, formerly of Nomura and RBS. Related: Could Deep Sea Mining Fuel The Electric Vehicle Boom?

Such a fall would not necessarily equate doom the longer-term uptrend, analysts posited.


Source: Reuters

“We continue to see this improving volatility backdrop, so there’s no sign that the long-term trend is changing,” said Richard Adcock, a former UBS and now independent technical analyst. “The market can carry on higher than people expect.”

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.

“One is at $2,067, another comes in at $2,286,” said Pelc.

“Lucas ratios — a tool using a sequence of numbers similar to Fibonacci’s — suggest gold could rise to $3,598.80 an ounce in 4-5 years,” he added.

By Mining.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News