Gold has had an extraordinary 400% run since bottoming around year 2000, when the then Fed Chairman Alan Greenspan embarked on the cheap debt expansion policy. It hit a speed bump in 2008 but has risen dramatically since then. Some may argue from a technical view that its chart since early 1990s looks like the left side of an Eiffel Tower structure & the right side may play out, but fundamentally its being driven by the fear of a big future plunge in fiat currency values & declining cash purchasing power.
There’s a fair chance that this fear could be overdone as it will take years if not decades for another asset to replace the US dollar & its Treasuries as a safe haven simply because there isn’t enough gold circulating globally unlike US dollars.
Its chart has been creating a rising trend, with a monthly support seen at 1550 & resistance of 1900. Short term support is about 1700 & resistance is 1790. Intermediate term, a bullish pennant continuation maybe forming.
Im a gradual buyer at 1550, with a view that if next year is bearish as per the SNP500 triple top playing out, it could fall back to about 1280-1330 at its 38.2% fib retracement. Upside target is 2000 for now.