Gold rallied to a record high this year due to the coronavirus pandemic. Gram gold rose to 454 pounds, while the price of gold ounces saw $ 2,000. The rise is due to the economic incentive packages depreciating money. In addition, rising tensions, geopolitical problems and public debt become fuel for the rise.
Global debt and unlimited money issuance worsens confidence in the US dollar as a global reserve currency. Investors also believe that the COVID-19 crisis will not disappear anytime soon.
Ounce of Gold Has Seen $ 2,000!
Gold prices rose sharply and set a new record of $ 2,004.30. Silver prices have also risen sharply and are preparing to close at the highest level in seven years today. Both precious metals continue to receive strong support from safe haven demand, with concerns about Covid-19 infections, geopolitics and problem price inflation.
The graphics continue to rise strongly, which invites technical analysis-based traders to the long position. Importantly, there are no early warning technical signals showing that market tops are at hand on both metals.
Technical Overview of Gold Price
Technically, bulls generally have strong short-term technical advantages to achieve an upward move in the near term. The next bullish futures price target of gold bulls is to achieve a level close to the resistance found at $ 2,100.00. Bears’ next short-term negative price target is to push prices below $ 1,912.00. The initial resistance is seen at $ 2,025.00 and then $ 2,050.00. The first support is today’s low of $ 1,971.00, and then this week’s low of $ 1,963.50.