A Bloomberg analyst sees a good chance that the gold price will rise well above the USD 1,500 mark by January. In addition, a spectacular long bet on gold is reported in New York.
Gold price stable
The gold price was quoted this morning at 7:30 a.m. in FOREX trading at 1,455 US dollars. This was equivalent to 1,322 euros. Gold was thus just under 7 percent below its high for the year at the beginning of September. In an article on Bloomberg, analyst Tom Thornton explains why he currently sees a favourable constellation for gold owners and long speculators.
Gold strongly “oversold
Gold has only given way moderately in the course of the recent consolidation. However, the precious metal is already heavily oversold. As an argument, he presents the technical indicator MACD, which characterizes the momentum of an asset over time (see chart below). “I think the situation is really bullish if they like gold,” says Thornton. He also explains that the seasonality in December also speaks for gold. In an article on 12th November we showed that over the past six years there have been very good buying opportunities towards the end of the year (so it’s worth buying gold now!). Thornton sees a good chance that the price will rise to USD 1,560 per ounce by January. If it goes any further, then the next big uptrend in gold is imminent.
Gold bet on 4,000 dollars
Bloomberg also reports that on Wednesday a large tranche of 5,000 call options (equivalent to 500,000 ounces or 15 tonnes) was closed on the US futures market, giving the holder the right to buy gold in June 2021 at a price of 4,000 US dollars per ounce. “It’s like an 18-month life insurance policy. What will the world look like when gold stands at $4,000? It is hoped that there will be a rapid and brutal upturn,” comments Tai Wong of BMO Capital on the purchase. The cost of the option was “only” 3.5 dollars per ounce. That is at least 1.75 million US dollars.