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Gold price analysis - will it break the level of 2000?
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Gold prices have risen from $1,801.30 to $1,940 per ounce in the past two weeks. As of July 28th, gold prices had fallen back to $1,929 per ounce. But it rebounded quickly on the 29th. Overall, gold price is still in a good upward trend, and has certain correction pressure after a continuous rise, which may lead to a falling gold.To get more news about WikiFX, you can visit wikifx official website.
At the beginning of 2020, the trend of gold price had ups and downs mainly due to the unstable international political situation, public health emergency and oil war. In addition, a series of international factors, including the unresolved North Korea issue, uncertainty of the US-China trade negotiation, Brexit issues, Iranian Major General Sulejmani assassination, the COVID-19 pandemic, etc. cause continuous panic sentiment in market, which further boost the gold market.
Gold prices showed a rising trend apparently, when the pandemic totally broke out in the world this March. From a whole view, it has been increasing steadily even though there are some slight falls. The price started to mount from $1,638 in mid-March to $1,725 per ounce in mid-April. Till the mid-June, it had reached $1,638 per ounce. At the same time, the whole world fought against pandemic which somehow caused economic depression. Many industries were in a slump, and many companies even suffered bankruptcy. That's the main reason why gold prices rise sharply.
Furthermore, gold prices started to jump up obviously, and then dramatically increased from July 17. The chart in the recent two weeks also showed that gold prices soared from $1,810 to $1,980 per ounce. However, the fall on July 27 triggered mass panic as gold prices declined to $1,953 per ounce. It is normal for gold to fall slightly due to the correction pressure after a continuous increase.
At 0:00 on July 28, the price of gold hit a record high, up 27%, close to 1981 US dollars per ounce. At the same time, according to official statistics, Bitcoin also reached a record high, up 17%, rising to 10,900 US dollars. There are many reasons for the rise in gold prices, in addition to the failure of effectively controlling the coronavirus pandemic and the severe international political situation. Monday, the Republican Party of the United States launched a new round of $1 trillion rescue plan, further stimulating a surge in gold. And People vigorously purchased gold to maintain the value due to the continuous panic sentiment. According to the comprehensive analysis, the trend whether gold will continue to grow depends on the international environment. It is suggested that investors should be cautious about selling high and buying low. Pay close attention to the market trend and don't follow others blindly.