Gold Price Is Doing It Again / Commodities / Gold & Silver 2020

Gold is trading really close to its 2011all-time high. This is obviously a critical level for the future of goldprices.

Historically gold in US dollars often clearssignificant all-time highs only some time after significant currencies like theEuro and British pound.

This is mainly due to US dollar behaviourduring times of significant risk aversion, like we’ve had this year and 2008,for example.

The following charts comparing gold in USD,in GBP and in Euro shows just that:

Gold in USD only surpassed its significantMarch 2008 high about a year after gold in GBP and Euro did it. We have asimilar setup where gold in GBP and Euro already hit their 2012 high aroundAugust 2019.

Both GBP gold and Euro gold are sittingcomfortably above their 2012 high. History strongly suggests that USD gold willfollow and get comfortably above the 2012 high real soon.

The US dollar cycle has turned and is likelyto be under severe pressure over the coming months. This will significantlysupport USD gold prices.

The following chart (with analysis here)shows the US Dollar Index from a long-term point of view:

This suggest that we are in a part of the USdollar cycle between points 4 and 5, which is similar to the late 70s. Gold islikely to emulate the late 70s performance where it went from about $100 to$850 on the back of US dollar decline.

For more on this, andsimilar analysis you are welcome to subscribe to my premium service. Ihave also recently completed a Silver Fractal Analysis Report as well as a Gold Fractal Analysis Report.

Warm regards,

Hubert

“And it shall come to pass, that whosoevershall call on the name of the Lord shall be saved”

http://hubertmoolman.wordpress.com/

You can email any comments to hubert@hgmandassociates.co.za

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