The gold price started firmly into the week yesterday, but then had to give up again. Nevertheless: The bulls remain on top of the trigger. And the price of gold is currently rising again. Now the analyst Bannockburn Global Forex is speaking at the price of gold and is spending the next important target for gold.”A four-day rally said gold prices above $ 1,750,” the analysts wrote in a research report. According to the analysts, technical indicators such as the moving averages or the slow stochastics point to further increases in the price of gold. “The next big goal is $ 1,800,” the analysts write. The main support down is $ 1,720.In principle there is little to add from a technical point of view. In fact, the next rally started with the breakout above the $ 1,720 mark.
As long as it does not fall below this level again
As long as it does not fall below this level again, the most likely scenario is a breakout to a new nine-year high above the $ 1,800 mark. The environment for gold could currently hardly be any better. The renewed monetary policy measures by central banks around the world in connection with the corona pandemic are fueling fears of inflation. If these were slowed down for a long time by the weak oil price, the recovery in oil in recent days suggests that inflation may even become an issue faster than many market participants expect. Gold offers classic protection in a phase of rising inflation. In addition, the dispute between China and the United States is far from over. Again, escalation seems to be only a matter of time. The gold price should also benefit from this. The course has been set for an increase to a new all-time high in the coming months.