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Today StockCharts365.com has taken a closer look at the gold price. It has almost increased tenfold since 2001, from USD 250 then and up to today USD 2,385. Now it can rise to USD 10,000.


[10 July 2024]


Today, Wednesday 10 July 2024, StockCharts365.com has taken a closer look at Gold and the gold price.


It has almost increased tenfold since 2001, and can now easily multiply again in the next 6-8 years.


Read more about this below in the case here under today's technical analysis of the gold price.


 

First a little bit about Gold (source: Wikipedia)


Gold is a chemical element with the symbol Au (from the Latin word aurum) and the atomic number 79. In its pure form, it is a bright, slightly orange-yellow, dense, soft, malleable, and ductile metal. Chemically, gold is a transition metal, a group 11 element, and one of the noble metals. It is one of the least reactive chemical elements, being the second-lowest in the reactivity series. It is solid under standard conditions.


Gold often occurs in free elemental (native state), as nuggets or grains, in rocks, veins, and alluvial deposits. It occurs in a solid solution series with the native element silver (as in electrum), naturally alloyed with other metals like copper and palladium, and mineral inclusions such as within pyrite. Less commonly, it occurs in minerals as gold compounds, often with tellurium (gold tellurides).


A relatively rare element, gold is a precious metal that has been used for coinage, jewelry, and other works of art throughout recorded history. In the past, a gold standard was often implemented as a monetary policy. Gold coins ceased to be minted as a circulating currency in the 1930s, and the world gold standard was abandoned for a fiat currency system after the Nixon shock measures of 1971.


In 2020, the world's largest gold producer was China, followed by Russia and Australia. As of 2020, a total of around 201,296 tonnes of gold exist above ground. This is equal to a cube, with each side measuring roughly 21.7 meters (71 ft). The world's consumption of new gold produced is about 50% in jewelry, 40% in investments, and 10% in industry.


 

Technical Analysis of Gold:


Technical Analysis of Gold:


The gold price is in a long-term rising trend (cf. monthly chart), and a further strong development is signaled for the gold price in the coming years within this rising trend.


A new strong technical buy signal for gold has recently been triggered after a breakout from a very large right-angled triangle consolidation formation (period 2011 - 2024, cf. chart).


According to this long-term positive trend that the gold price is moving within, and has done since back to 2002, a further rise in the gold price is now being signaled in the years ahead.


There is now little technical resistance to a further rise in the gold price, and the potential is all the way up to around USD 10,000 for the gold price in the next 6-8 years (cf. chart).


Gold can therefore still prove to be a good investment in the coming years as well.


In the very short picture now, the gold price is consolidating within a rectangle consolidation formation, and between a technical support level around USD 2,270.00 and a resistance level around USD 2,440.00.


There is also significant technical support for the gold price now around the 50-day moving average, which is currently around USD 2,340.00.


A break up from this consolidation formation, and above the USD 2,440 level will trigger new positive technical signals for the gold price, and where there will then be little technical resistance further up.


In the event of a break down from the aforementioned consolidation formation, and below the short-term support level which is around USD 2,270, a test of the support level down towards the 200-day moving average, which is currently around USD 2,150, will be signalled.


 

NB! Remember to have read and understood the disclaimer.

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