Virus outbreak likely to push gold higher


Staff Reporter


Goldman Sachs sees gold heading towards $1,750/oz, Citi Bank has said it could reach $2,000/oz within the next 12 to 24 months.
Having reached 2020 target of $1625/oz, the virus outbreak is likely to send it higher as it is difficult to see what at this stage can halt or pause the rally perhaps apart from its own success, which has led to a short-term overbought market condition.
From a technical perspective, using a Fibonacci extension, the next target is $1,690/oz with support at $1,595/oz. Keeping in view the attractive current levels, selling will be triggered anytime within the range of $1,635 – $1,680. If this selling is absorbed than analysts predicts $1,765/oz.
Thereafter, correction will be due and it is expected to correct around 15%. Those who missed the current rally may target around $1,500 to get in the rally. If you are a long-term, patient, investor than Gold has the potential to touch $2,000/oz within the current year. An upside of 20% from current levels and 33% from $1,500/oz.