Gold Outlook 2020

In this update The Golden Investor makes its own predictions about the course of gold in the foreseeable future.

Last night after days of threats Iran attacked U.S. army bases in Iraq. By sunlight it became clear that what seemed to be a big development in the Iran and American conflict, was just a play by Iran. The rockets they fired at the bases were inaccurate, weak and very certainly ineffective. The bases could evacuate and go to the shelters long before the rockets hit the ground in Iraq. It was just a play performed by the Iran government to satisfy their people, but the Iran military is capable of doing much more, but were smart enough to not use their real strength against the superior state in this conflict. The emotionally driven gold course precisely showed this emotional rollercoaster. The stock price of gold reached $1611 dollar, but when it became clear that this was just a big act, gold declined at rapid pace down to $1556 at the time of writing. A drop like this could easily be expected, since temporary conflicts like this tend to only push up gold prices on the short term. Today the imminent threat seems over, maybe attacks on American and Saudi oil targets will push op gold slightly coming months, but only temporarily.

After the setback has found its level of resistance, the bottom level to be between the $1520-$1540 area, the gains of recent weeks will continue and gold prices will rise steadily. This increase remains fueled if the data stays weak and there are no signs of better outlooks, the possible Phase One trade deal will only slightly push down gold prices on the short term. In this deal most taxes imposed remain intact and further deals won’t be made before the presidential election and probably won’t be after that too. It seems that nothing stands in the way of a gold rally reaching to even greater heights. With monetary institutions weaker then ever there’s no safeguard protecting the global economy only dangers remain which could boost the price of gold like never before.

At the end of June The Golden Investor expects the gold course to be driven up by weak global trade and without munition in bazookas of central banks the level reached then will not be the ceiling for gold. This will drive the price up to the range of $1650-$1700 at the end of the year. And if an imminent threat of the economy bursts, either by a production crisis, rising interest rates, the cutting of pension funds, a malfunctioning repo-system or a further escalation of the American conflicts, the gold price could reach to over $2000 dollar. This will depend on the impact of a certain burst and which adequate measures will be taken. The Golden Investor remains skeptical and stays long on gold.

Disclaimer: The writer of this article owns gold stock, this article shoudn’t be interpreted as investment advice or anything like that.

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