Is Gold About To Break To An All-Time High?

News Room
2 Min Read

After surging by over 10% or nearly $200 in March, gold is fast-approaching its all-time high of $2075 that it reached during the 2020 pandemic. Since reaching its all-time high in 2020, gold has been treading water without much movement in any particular direction. Interestingly, the price action of the past few years has created a resistance zone overhead from $2,000 to $2,100. If gold can finally close above that resistance zone with heavy trading volume, that would likely indicate that a powerful bullish move is ahead.

The monthly gold chart shows the $2,000 to $2,100 resistance zone along with the long-term uptrend line that began in the early-2000s:

The weekly chart shows the $2,000 to $2,100 resistance zone in better detail:

Gold’s latest surge was caused by the expansion of the U.S. Federal Reserve’s balance sheet as it made the depositors of the two large failed banks — Silicon Valley Bank and Signature Bank —whole. As I have consistently stated in the past, our debt-ridden global economy is hopelessly addicted to monetary stimulus, money printing, and ultra-low interest rates. Any attempts to raise interest rates or pull back on monetary stimulus results in financial and economic crises. This monetary predicament, while terrible for humanity and the global economy, is good news for gold and silver in the years to come.

Please add me on Twitter and LinkedIn to follow my updates and economic commentary.

Read the full article here

Share this Article
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *