Gold…Where next?

As Gold re-approaches the March highs the obvious question is where next? While the $1,800 area is a clear technical area of resistance and target, historical analysis from 2008 says we’ll be higher still this quarter.

From the low seen in Gold a month after Lehman Brothers went under (24 Oct 2008), we rallied 30% into year end. Anything similar this time from the $1,451 low seen after the major Covid-19 Panic in March would say we’ll be at $1,900 by the end of Q2, 2020.

It is also worth noting that this year Gold has already made all-time highs against other major currencies including CNH, EUR, GBP and SGD, reflecting its dominance. Apart from Palladium it is the best performing currency year-to-date.