Gold has been very VERY volatile in the last months due to speculation and uncertainty, coupled with the fact that it is still mostly considered THE safe-haven asset. That being said, gold has had questionable short term returns in bug market crashes (see 2007-2008). That being said the years following the great housing recession saw the absolute best returns for gold because consumer confidence was so low.
I expect the same thing to happen here. Gold will remain volatile and risks another big correction (see diverging RSI). but long term prospects for this trade are still extremely good in my humble opinion and will most likely make new highs going into 2021-2022.
I cannot recommend a buy at these levels due to it being overbought and the indexes reversing back downward but any corrections are good to start building positions for the long term are good ones.
I expect the same thing to happen here. Gold will remain volatile and risks another big correction (see diverging RSI). but long term prospects for this trade are still extremely good in my humble opinion and will most likely make new highs going into 2021-2022.
I cannot recommend a buy at these levels due to it being overbought and the indexes reversing back downward but any corrections are good to start building positions for the long term are good ones.
