The gold price has been tough on bulls in August but fundamentals haven’t changed much.
Yes, it did drop not only below $2 000 but below $1 900 erasing July’s breakthroughs. But from the current perspective, gold’s bullish moves in the second part of July appear as “unduly” rush – with its culmination in the first week of August. It had to be stopped and corrected, as it did eventually.
Currently, gold is in the same “normal” channel of steady rising where it has been previously and will soon get back to $2 000 after it rests at $1 950 for a while. The US-China tensions and virus resurgence here and there provide enough reassurance that there will be no lack of uncertainty to keep gold on the bullish trajectory.
That’s why, tactically, in the long term, it may be a good moment to step into the market until gold gets up again.
Source : GOLD: still looking upwards