Will the gold price reach $1,800?

by Alistair Strang from Trends and Targets |

Geopolitics has meant traders are flocking to the yellow metal. Our chartist looks at the key numbers.

Gold (COMEX:GC) 

The theory, as always, remains that if gold is going up, indices will probably go down. Of course, it will be interesting to see how this plays out against the current backdrop of a potential WW3 and an absent UK PM.

As for the price of gold, it's a bit more interesting as it is trading at $1,552 at time of writing. There appears to be a real trigger level now at $1,556 dollars.

If the metal now manages above this level, further movement to $1,593 looks very possible. But to be realistic, our mid term analysis continues to insist $1,602 as a major point of interest, a level at which some reversal becomes almost essential.

Of course, if the current global posturing gets hot, $1,602 could easily be ignored as a footnote in history in a headline rush uphill to $1,634 and some certain stutters. Longer term, $1,831 calculates as a major ambition.

The chart below highlights the early signals of gold starting to bubble up. We're pretty far from convinced indices shall decline in reaction to gold's movements.

Quite the converse as there's a heck of an argument suggesting even the FTSE 100 should continue heading north, challenging (and probably beating) the highs of 2018. The only puzzle is whether we shall see the usual (?) mid-January market decline before surprise recovery.
 
Finally, Happy New Year and our best wishes for a profitable one.

Source: Trends and Targets      Past performance is not a guide to future performance

Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.

Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang, or interactive investor will be responsible for any losses that may be incurred as a result of following a trading idea. 

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