After surging to a new all-time high of $2,074 in August of this year, gold has since come back to $1,848 for a low in late September. The precious metal is currently trading at $1,890 spot.
Retests of former all-time highs are common in the capital markets. The market is daring buyers to step back in and purchase where they did several months ago. The bias for this scenario is that buyers will once again present themselves as they did in August.
Over the short-term, we can see that gold has formed a terminal wedge pattern (see video), a typical bottoming formation. The key is that this pattern is occurring within the above-mentioned retest of the former all-time high. This is a bullish scenario. While nominal new lows back into the low or mid-$1,800’s may still occur over the next several weeks, this pattern should resolve higher by late Q4 2020, resulting in a new high above the August peak of $2,074.
At www.iGoldAdvisor.com we are positioning our firm and clients for the anticipated low ahead and a strong continuation advance in late Q4. Traders and investors should be preparing their game plans for 2021 now.
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This article was originally posted on FX Empire