The global economy is on the ground and the global rescue packages in the trillions threaten to significantly increase inflation in the foreseeable future. Against this background, gold investors see their fundamental bullish positioning confirmed. In the last week of trading, however, the mood in this regard has again “flipped”. The prospect that the virus crisis could relax earlier than expected pushed the gold price significantly below the $ 1,700 mark last Friday. Read below why this could threaten another big sale now.
New annual highs
In addition, the excursion to new annual highs was slowed down and stopped by a striking resistance line. Gold has lost 3.8% since the recent year high. And the supposed chart-technical outbreak was quickly nipped in the bud.Overall, the gold price is not particularly rosy, despite new annual highs. The current technical situation in combination with Elliott Waves indicates an unfinished ABC correction. In the context of the missing and probably already started downward wave C, prices from at least USD 1,450 (wave A level) up to approximately USD 1,350 are still the most likely scenario. Compared to the last gold analyzes at this point, there is very little change regarding the price targets.