Today’s gold market momentum has been very bullish indeed. Prices surged past $1,800 and seem intent on settling there for the day. With no real pressure to sell gold holdings either, one has to wonder what levels can be reached over the coming weeks.
Gold Blazes Past $1.800
It has been coming for quite a while now, but gold has seemingly successfully broken the $1.800 resistance. After a very strong push below $1,790 all the way to $1,816, settling above this fabled threshold is all one can ask for.
Looking at all of the current financial turmoil, this gold surge is not surprising at all. Lingering tensions regarding the US dollar, unemployment rates, and the upcoming elections will continue to wreak havoc for months to come. Under normal circumstances, this will continue to drive more people to safe haven assets, such as gold, silver, and other metals.
As the gold price now sits seemingly comfortably above $1,800, there will undoubtedly be some minor resistance. No real downtrend is expected to materialize, as macroeconomic conditions still favor precious metals across the board. Establishing a foothold near the current level can serve as a stepping stone to push toward the previous all-time high of roughly $1,900 an ounce.
No Reason to Sell now
Investors will be pleased with the way this market has evolved. Even so, it is very likely that most of them will simply hold onto their commodities in search of even higher values. There is no real reason for anyone to take profit right now.
Unlike stocks, gold and silver are long-term investments first and foremost. The longer one holds these commodities in a portfolio the better the rewards tend to become. Until a gold price of $1,850 or higher is achieved, no major shift in market conditions is to be expected.
While a shift of $20 would be a big deal in other markets, it is a blip on the radar for precious metal investors. Those who genuinely believe in gold will play the long game at all times. Influencing the current uptrend of the precious metal will not be easy. There is simply more demand to buy than there is a desire to sell.
Don’t Forget About Mining Stocks
Investors who are looking to add some more pizazz to their portfolio have an option to explore. Investing in gold and silver mining stocks can prove to be worthwhile. This is not the same as investing in precious metal-backed products, however.
Given the bullish sentiment regarding silver and gold, mining companies find themselves in a strong position. In fact, their stocks and shares may become more popular than technology stocks if this growth keeps up. It is an alternative market segment well worth keeping an eye on for at least the remainder of 2020.