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Home » Will Gold ever reach USD 300 an ounce ? OMG

Will Gold ever reach USD 300 an ounce ? OMG

Gold prices have been increasing, driven by a cooling U.S. labor market that has weakened the dollar and lowered Treasury yields, making the precious metal more appealing. This uptrend is further supported by geopolitical tensions and new U.S. trade tariffs on China, which have stoked safe-haven demand. Due to these factors, gold prices in Asian trade on Friday extended gains, with spot gold up by 0.3% and futures rising by 0.9%. Investors expect a possible U.S. rate cut with the likelihood of 50% for September, according to the CME Fedwatch tool. Therefore, gold is poised to break its recent losing streak and secure its first positive week after the three-week correction. This price action reflects the status as a stable investment amidst global uncertainties.

Gold long-term perspective and target

The long-term outlook for gold remains strongly bullish, with projections targeting the $3,000 mark, as previously discussed. This optimism is supported by the technical patterns observed in the chart below. This chart illustrates the formation of an ascending broadening wedge, extending from the 2016 lows of $1045.40. Gold prices have been trading within this wedge pattern, indicating a persistent upward trend. Moreover, a significant long-term consolidation phase from 2020 to 2023 has given rise to an inverted head and shoulders formation on the charts. These patterns indicate a strong bullish price outlook. The breakout from this pattern, through the long-term pivot and neckline at $2,075, further strengthens the bullish outlook. This breakout suggests an ignorance of minor seasonal corrections and signals the continuation of the gold rally.

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