PrimeXBT’s Kim Chua Sees Gold Topping $2,500 by Year End
The price of Gold looks to be on a steady climb again after it managed to hit a low recently. Price targets of $2,000 to $2,500 are very much in play towards December with a possibility of $3,000 not out of the question.
There are a few factors to consider which once again highlight Gold’s status as the king of hedges and safe haven assets. From a collapsing high-risk Bitcoin and cryptocurrency market to US yields falling because of the $6 trillion budget put forward – Gold could become highly sought after again.
Having hit its all time high of $2,075 fairly recently, the price is still movable enough to see that broken and a bit of a spike to develop, expects PrimeXBT analyst, Kim Chua.
Post bottoming out at $1,680 with a double bottom, the price of Gold has risen steadily in a channel, with a potential to hit $1,930 before a short consolidation. With USA yields falling and Biden’s new $6 trillion budget for year 2022, the fundamental backdrop is strong for Gold to move higher in the second half of this year, with a good chance of breaking above its ATH of $2,075.
The recent setback in BTC is also favouring Gold, with some conservative investors who think the volatility of BTC price is too much to bear returning back to Gold. This will help Gold regain its narrative of being the best store of value and inflation hedge.
Some central banks have begun to accumulate Gold again after pausing since August last year. The weekly chart of Gold has already broken out from its 8-month consolidation and is primed to rally another $700-$1,000 for the coming 6 months. I expect the price of Gold to hit between $2,500 to $3,000 by the end of this year due to this breakout.
About Kim Chua, PrimeXBT Market Analyst:
Kim Chua is an institutional trading specialist with a track record of success that extends across leading banks including Deutsche Bank, China Merchants Bank, and more. Chua later launched a hedge fund that consistently achieved triple-digit returns for seven years. Chua is also an educator at heart who developed her own proprietary trading curriculum to pass her knowledge down to a new generation of analysts. Kim Chua actively follows both traditional and cryptocurrency markets closely and is eager to find future investment and trading opportunities as the two vastly different asset classes begin to converge.