SMM Network News: the recent gold market continues to be in the doldrums, spot gold prices test the support level of 1850 US dollars / oz, brushing the lowest level in recent two months.
Leigh Goehring, general manager of Goehring & Rozencwajg Associates, said the downturn in gold prices may be a good opportunity for investors to buy on the bargain.
Goehring pointed out that while it appears that the first wave of the gold bull market is over, the temporary weak performance means that investors have excellent bargain-hunting opportunities, and the second rally may even push gold prices to $10000 an ounce in 10 years.
Gold prices are likely to continue to fall throughout the autumn, with the gold market peaking around $2060 an ounce in the first wave of the bull market. It will not be a surprise that gold prices continue to fall to the 200-day moving average over the next three months. "
The 200-day moving average is currently around the $1720 / oz level.
Goehring pointed out that there are many main reasons for the recent decline in gold prices, including vaccine news and Fed policy.
"all kinds of panic, including the VIX index, have been factored into the market, such as concerns about the US election."
The market is worried about the possible controversy over the outcome of the US election, but at the same time, if the election results are successful at that time, the market will not be affected much and there will be downward pressure on gold.
In addition, the news of the vaccine is also good for the global economic recovery, but it will also be a great pressure on gold.
But in the long run, there is no doubt that the price of gold will go higher.
"the first wave of the gold bull market was affected by the closure of many cities after the epidemic, and gold received a big boost from the global economic malaise after the extremely loose monetary policies of central banks."
Goehring believes that the recent downturn in gold prices will be an excellent opportunity for investors to buy on the bargain.
"We firmly believe that the second rally in the gold bull market will be driven by the sharp inflation brought about by global economic growth after the epidemic."