Gold has had a good fourth quarter, with a move from $ 1,820 to $ 2,070 so far. But will we break above $ 2,100 before the end of the year? Only time will tell, but there are good reasons to be optimistic.
Central banks are continuing their gold purchases in order to avoid the US dollar. Geopolitical instability makes it important to go away from the US dollar as a reserve currency, especially if there's a chance that the US will become the adversary in a future conflict.
On a technical note, we've seen the highest monthly close ever in November, and the highest weekly close ever on Friday. Gold even traded above its highest price ever for a while in the Friday session. All of this may bring out enough buyers to prevent the gold price from reacting down from current levels, as has happened three times before in the past two years.
Once gold breaks above $ 2,100, we're likely to see $ 3,000 within two years. If it doesn't, we'll have some more time to accumulate gold at current prices.
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| Quarterly performance of gold since 1997 |
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