Gold could be $3k in 2024 ?

2 min read

Gold, often regarded as a safe-haven asset and a hedge against inflation, has been a popular investment choice for centuries. In recent years, it has captured the attention of investors as they seek stability and protection in uncertain economic times. The year 2019 witnessed a significant surge in gold prices, and there is speculation that history may repeat itself. In this article, we will explore the insights shared by Rashad Hajiyev, a celebrated analyst on Twitter, regarding the potential for gold to recreate its 2019 performance.

Rashad Hajiyev

One of the notable patterns that occurred in 2019 was the movement of gold above a particular trend line. This breakout followed a period of volatility contraction known as the VCP (volatility contraction pattern). The VCP pattern is characterised by multiple tops and consolidation before a breakout occurs. In the case of gold in 2019, once it broke out, it experienced a remarkable 53% increase within just 14 months.

What makes this pattern intriguing is that it is not an isolated incident. Throughout history, gold has displayed a tendency to pause at a specific level, test it repeatedly, consolidate, and then experience a powerful breakout. This recurring pattern suggests that gold has the potential to repeat its past performance.

Analysing the current situation, it becomes evident that similar patterns are emerging. Although the scale may not be immediately apparent, Hayev suggests that a repetition of the 2019 pattern is a possibility. Additionally, an inverted pattern can be observed in the chart, further supporting the notion of an imminent breakout.

According to the chart analysis, if gold surpasses the resistance level, it could result in a significant price increase. The projection indicates the potential for gold to reach $3000 in a matter of months, rather than years. While this may seem optimistic, it is important to consider the recurring theme of breakthroughs occurring after prolonged testing of a specific level.

It is crucial to acknowledge that gold has faced challenges in crossing the $2080 level convincingly in recent years. However, historical data from various charts and stocks reveal a common trend. When an asset repeatedly tests a resistance level before successfully breaking through, it often ignites a powerful rally. This analogy compares the breaking of a dam, resulting in a rush of water that cannot be contained. Likewise, when gold finally overcomes the resistance, it has the potential for an unstoppable rally.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related posts

February 29, 2024 by Weekend Investing

Practical insights for wealth creation

Join the thousands of regular readers of our weekly newsletter and other updates delivered to your inbox and never miss on our articles.

Thank you. You will hear from us soon.

Mail Sent Failed !

    vector

    Gold could be $3k in 2024 ?