Saxo Bank Official Expects a Bullish Gold Trend During Second Half of 2020

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Reaching a value of $1,800 per gold ounce as a stable level is merely a matter of time. A new all-time high is still within reach in the next 18-36 months.

These are trying times for those looking to make any form of investments. The year 2020 hasn’t been kind to most markets, yet gold remains as bullish as ever. According to Saxo Bank, the patient investors will reap the rewards in the end. 

The Gold Rally Isn’t Over

Over the past few days, there has been ample action in the gold markets. An early push to $1,800 an ounce was rejected in a rather violent manner. Contrary to most analysts’ expectations, the price even drifted below $1,760 again, albeit not for very long. 

Following  a very strong rebound yesterday and earlier today, the value of gold sits near $1,775 again. This is further confirmation of how volatility may induce temporary price changes, but breaking the overall uptrend will not be easy.  A new push to $1,800 is very likely to materialize, all things considered.

Saxo Bank’s head of commodity strategy thinks along the same lines. In his opinion, gold will keep moving higher in the second half of this year. Several events are taking place this week that may pave the way for such a price surge. All markets remain on egg shells, fueling demand for safe haven assets. 

Looking at the current spot gold futures, everything is going according to plan. Futures remain above $1,770 per ounce, indicating that no downtrend should be expected as of yet. Minor volatility may occur ahead of the weekend, but that is part for the course at any moment in time.

Playing the Patience Game is key

Ole Hansen of Saxo Bank confirms that gold is the only “big” commodity to note positive returns in 2020. Despite stocks surging a bit as of late, they have a very steep hill of losses to climb. Moreover, it seems rather unlikely that stocks will remain in the green for long. Once the full repercussions of COVID-19 stimulus packages become apparent, things will look very different.

Being patient is key for any gold investors and speculators. Big profits never come easy, especially when precious metals are involved. Gold can be a very frustrating commodity in one’s portfolio, but it always tends to reward those who wait and don’t trade based on emotions. 

Reaching a value of $1,800 per gold ounce as a stable level is merely a matter of time. A new all-time high is still within reach in the next 18-36 months. How high the price will go in that period is difficult to predict. Finding contributing factors isn’t difficult, as the US elections are just one possible catalyst.

Sustaining a rally is always more complex than starting one. Throughout 2020, the gold rally has been sustained with relative ease, but the real battle still lies ahead. Maintaining a wait-and-see approach can pay very strong dividends, assuming one has the stomach for it. 

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