The three main drivers pushing the gold price towards new all-time highs are inflation expectations, the Yen, and speculator activity. Inflation expectations are on the rise, which historically has had a positive correlation with the price of gold. The Yen may also be starting an uptrend, which has historically been correlated with increases in the price of gold. Additionally, speculators are expected to continue adding to their long positions in gold, which could further drive up the price before it becomes a consensus long trade.
Looking at the charts, the gold price breakout of 2024 appears strong. The weekly price chart shows the highest closing price in history, a consolidation period around former all-time highs, and a rising long-term moving average. Similarly, the monthly chart displays a cup and handle formation, indicating a secular breakout that could lead to continued new all-time highs in 2024.
The key catalysts for the gold price breakout to new all-time highs are inflation expectations, the Yen index, and speculator activity. Inflation expectations have a positive correlation with the gold price, as do trends in the Yen index. Speculators also play a significant role, as their positions in the futures market can impact the price of gold. At present, there is still room for speculators to increase their long positions before reaching a consensus long trade.
Overall, the gold price charts and fundamental drivers are aligning to support the gold price breakout of 2024. Higher highs are expected in the coming months, and a turning point will be monitored closely. The leveraged play on gold is silver, with a forecast of $34.70 underway. For those with expertise in the crypto field, InvestingHaven.com is looking to grow its crypto division and welcomes inquiries from those who can help spread unique crypto charts and insights.
