AMAZING opportunity in GOLD. Price target 6000usd (3/3)
Updated
This is publication 3 out of 3.
Please give my idea a like if you found it useful.
Chart 1:
Chart 2:
History might not always repeat itself, but it often rhymes. The similarities between these charts are astonishing. The chart on the left shows us how the gold price was setting up before the parabolic bull run in the end of the 1970s. Check out the charts above for a closer look.
Gold is nearing the end of its long consolidation period. Gold is ridiculously undervalued at this price. With strong fundamental support, this Cup and handle pattern will launch the price of Gold into the sky.
Okay, so we have a buy setup here, but where did I get my price target from?
Why do I say 6000usd as ultimate target? Well, honestly, predicting the top is going to be very difficult. Maybe we go above 6k, or maybe we top out a little below. If we compare the fib levels to the parabolic bull run in the end of the 1970s, we can see that it wicked above the 4.236 fib level. Going to the 2.618 fib level at 5400, and even wicking above - up to the psychological level at 6000usd, is not unrealistic technically speaking. I would not be surprised if we even overshoot the 3.618 fib.
We also have a variety of different correlations that supports a big growth for Gold, like the gold to monetary base ratio.
I don't have the time right now to go in depth about all the fundamental factors in play here, but here are some pointers:
- Negative real interest rates
- Gold is a tier 1 asset - store of value
- Massive currency creation
---------> inflation inevitable, -> currency crisis
we can already see signs of inflation - commodity prices are soaring
As soon as money velocity speeds up again - inflation will accelerate
-Uncertain times and political instability -> People tend to put their money in a safe asset (Gold = Safe haven) when times are uncertain
-More retail investors in the financial markets - we have seen a massive surge in retail investors and traders the past couple of years - people are becoming more informed about how the financial systems work. When crypto cools down, and all the new retail investors who thought crypto would be the best inflation hedge realise that they should diversify into other, less speculative, assets - such as Gold and other precious metals, we will gain a lot of momentum.
Please give my idea a like if you found it useful.
Chart 1:
Chart 2:
History might not always repeat itself, but it often rhymes. The similarities between these charts are astonishing. The chart on the left shows us how the gold price was setting up before the parabolic bull run in the end of the 1970s. Check out the charts above for a closer look.
Gold is nearing the end of its long consolidation period. Gold is ridiculously undervalued at this price. With strong fundamental support, this Cup and handle pattern will launch the price of Gold into the sky.
Okay, so we have a buy setup here, but where did I get my price target from?
Why do I say 6000usd as ultimate target? Well, honestly, predicting the top is going to be very difficult. Maybe we go above 6k, or maybe we top out a little below. If we compare the fib levels to the parabolic bull run in the end of the 1970s, we can see that it wicked above the 4.236 fib level. Going to the 2.618 fib level at 5400, and even wicking above - up to the psychological level at 6000usd, is not unrealistic technically speaking. I would not be surprised if we even overshoot the 3.618 fib.
We also have a variety of different correlations that supports a big growth for Gold, like the gold to monetary base ratio.
I don't have the time right now to go in depth about all the fundamental factors in play here, but here are some pointers:
- Negative real interest rates
- Gold is a tier 1 asset - store of value
- Massive currency creation
---------> inflation inevitable, -> currency crisis
we can already see signs of inflation - commodity prices are soaring
As soon as money velocity speeds up again - inflation will accelerate
-Uncertain times and political instability -> People tend to put their money in a safe asset (Gold = Safe haven) when times are uncertain
-More retail investors in the financial markets - we have seen a massive surge in retail investors and traders the past couple of years - people are becoming more informed about how the financial systems work. When crypto cools down, and all the new retail investors who thought crypto would be the best inflation hedge realise that they should diversify into other, less speculative, assets - such as Gold and other precious metals, we will gain a lot of momentum.
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