Short Term Weakness Likely Prior To A “Massive Short Squeeze Propels” Gold and Silver “To Much Higher Levels” – GoldCore

Gold prices ended lower Thursday, with bullion retreating from a record rally that had seen the precious metal notch nine consecutive days of gains.

However, some analysts make the case that gold prices may be entering a period of consolidation following a historic run-up that has been at least partly prompted by the public-health crisis, but also exacerbated by a recent bout of weakness in the U.S.

dollar and the low yields being offered by government debt.

One measure of the dollar, the ICE U.S. Dollar Index is hanging around its lowest level in two years and the yield for the 10-year Treasury note is around 0.55%.

As expected and forecast, gold has reached record highs near $2,000 an ounce and silver reached multi-year highs near $26 an ounce, but prices were “due a sharp correction,” said Mark O’Byrne, research director at GoldCore, based in Dublin.

“Short-term weakness is very likely prior to a massive short squeeze that propels the precious metals to much higher levels,” he told MarketWatch Thursday. Gold is “quite likely” to climb to $3,000 in the next 12 months, and silver could rise to between $50 and $100.

“Focus on value and not price—it is important investors focus on gold and silver’s value as hedging and safe haven assets rather than their nominal price highs in dollars,” said O’Byrne.

Full article via Marketwatch here

Asset Performance in July 2020 (Finviz)

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