GOLD: Review Of 2018 And What 2019 Has In Store
With 2018 drawing to a close, Gold has managed to recover a huge 4.5% in December alone with the current Bullish momentum looking to extend into the new year. At the time of writing this article on New Years Eve, the precious metal is trading around the 1281.00 level, just shy of my second target of 1284.00 stated in previous articles. I do expect this level to be met and likely breached this week with 1290.00 being next in line. These levels should be watched carefully for a short-term reversal down to the daily trend line as shown on the chart. If this trend line is broken the next downside target is the 2008 trend line also shown on the chart. It is highly unlikely that this will be broken so these levels should be paid attention to for optimum long entries.
2019 is looking to provide positive conditions for Gold to continue gaining value well into the third and fourth quarters. As the next financial crisis looms with the U.S national debt weighing in at an insane $21 Trillion, the turmoil this will cause globally is something to take into consideration for the value of Gold. The one true currency that has withstood the test of time is going to shine once again. All-time highs of 1921.00 are going to be obliterated with $10,000/ounce fully achievable.
There are of course external powers at work looking to fill the void that Fiat will leave behind in the form of Cryptocurrencies and they will undoubtedly hold a firm position in the economic world arriving at a point in time when we need the monetary system to be faster and more advanced than ever before, but we cannot rule out Gold's place in society.
To conclude my outlook for Gold is most definitely bright, but we are entering uncharted territories with the dawn of the digital age, it will be interesting to see how the two pillars will stand together in the currency world.
Written by Sam Moore