Gold Will Continue Rallying in 2020
Gold Will Continue Rallying in 2020 By Chris Reilly for Casey Research
Gold has roared back to life in 2019.
It’s up 14.2% since January – and is on pace for its biggest one-year gain since 2010.
Take a look:
Of course, this shouldn’t come as much of a surprise to regular readers.
- My colleague E.B. Tucker called this move a year ago.
E.B. heads up our popular Strategic Investor and Strategic Trader advisories. Before working in the newsletter business, he comanaged a precious metals equity investment fund. Today, he serves on the board of a successful gold company.
In short, he has deep connections in the gold business. And it pays to listen to him.
In December 2018, he went on record saying gold would hit $1,500 an ounce in 2019. Gold was sitting at just $1,237 at the time… down 35% from its 2011 peak.
At the time, it seemed to many like an off-base prediction.
Just a couple months prior, mainstream media outlets like Seeking Alpha were printing articles such as “5 Reasons Never to Buy Gold.” And JPMorgan warned investors that they wouldn’t see a gold rally until the end of 2019.
I expect gold to take out its previous high of $1,900. That’s a 29% gain from here. And I expect that to happen in 2020.
From there, I see it hitting $2,200 – a 50% rise from its current price of $1,468 per ounce.
If you missed out on the first move, this is your second chance…
- E.B. says there are many catalysts which will push gold higher…
For one, several large mining firms combined this year, which is extremely bullish for gold.
E.B. says political dysfunction and ballooning deficits also set the stage for gold today. And central banks are buying gold hand over fist. According to the World Gold Council, in the first nine months of 2019, central banks have purchased 12% more gold compared to the same timeframe last year.
But E.B. says we need more than strong anecdotes to risk money on the gold sector.
- He’s looking at the technicals as well…
It’s what helped him determine that $1,500 an ounce was an appropriate price target this year. And right now, the chart of gold is saying higher prices are coming…
The gold chart below goes back to 2014. Notice that after gold hit its low in late 2015 (circled in red), each rally that followed registered a higher low. The pullbacks of 2016 and 2018 (also circled in red) each hit low points higher than the last. To E.B., this meant it was only a matter of time before gold exploded higher.