It is also worth recalling that since mid-March, the yellow precious metal was able to recover faster than many other assets after the “crown crisis” and show good growth dynamics. In addition, the lateral movement of gold quotes fits well with the seasonal trend of spring.
If you compare the current consolidation with the spring and autumn of 2019, you can find a lot in common. Even in spite of seasonality, the precious metal keeps a level position without large price fluctuations. The summer months should be promising for the gold market. Precious metal can test the mark of $ 1800 per ounce and above. But before this there may be another correction, which will displace uncertain investors from the market.
Investors should be patient. Any decline in the price of gold below $ 1700 per ounce should be considered as another chance to increase its position in precious metals. But for several days now we have been observing quotes at the upper trading point at the level of $ 1750 per ounce, which may indicate the end of the lateral movement and a quick break up.
But it may be that the gold market does not have enough energy to grow to $ 1800 per ounce. A correction can never be ruled out, and this time below $ 1,700. There is no guaranteed factor that would testify about the upcoming price rally.
The infusion of funds into the financial system by the Central Banks will continue to support the growth of some financial assets for some time to come. But it is worth recalling that current gold prices are much higher than previous years, and long-term investors are well aware of this. Therefore, you should not expect that gold will become cheaper. Once again, you can simply miss the chance to buy precious metals for the long term.