Price target of 2800
11+ Years of consolidation with a confirmation of CUP and Handle pattern on the monthly Time frames.
2011-2012: The Bull Run
Gold began this period with a strong upward trend, reaching its all-time high of around $1,900 per ounce in September 2011. This surge was primarily driven by concerns over the European debt crisis, the U.S. credit rating downgrade, and the uncertainty surrounding global economic recovery post the 2008 financial crisis. Investors sought gold as a safe-haven asset during times of uncertainty. However, as the global economy started stabilizing, gold prices gradually declined throughout 2012.
2013-2015: Price Correction
This period witnessed a significant correction in gold prices. The Federal Reserve's announcement of tapering its quantitative easing program, coupled with improving economic indicators in the United States, led to a strengthening dollar and a decrease in demand for gold. As a result, gold prices experienced a downward trend, falling to around $1,200 per ounce by the end of 2013. The market continued to face headwinds due to reduced inflationary concerns and a shift in investor sentiment towards riskier assets.
2016-2018: Recovery and Consolidation
Gold prices gradually started recovering from the lows of 2015. Factors contributing to this recovery included global economic uncertainties, volatile stock markets, and negative interest rates in several countries. Geopolitical tensions, such as Brexit and the U.S.-China trade war, further fueled demand for gold as a hedge against potential risks. Prices climbed to around $1,350 per ounce in 2016 and remained relatively stable until mid-2018.
2019-2020: Pandemic and Record Highs
Gold experienced a significant rally in 2019 and early 2020. Concerns over slowing global economic growth, escalating trade tensions, and central banks' dovish monetary policies led investors to seek refuge in gold. Additionally, the outbreak of the COVID-19 pandemic and its economic impact created further uncertainty, boosting gold prices. The metal reached a new all-time high of over $2,000 per ounce in August 2020.
2020-2021: Volatility and Recovery
Following the record highs, gold prices experienced increased volatility. The approval of vaccines and optimism surrounding economic recovery led to a decline in gold prices. However, concerns over inflation, massive government stimulus measures, and ongoing geopolitical tensions provided support and limited the downside. Gold prices hovered around $1,800 to $2,000 per ounce during this period, reflecting a balance between positive and negative factors.
2022-2023: Mixed Performance
In recent years, gold prices have exhibited a mixed performance. The global economic recovery from the pandemic, rising interest rates, and a stronger U.S. dollar have exerted downward pressure on gold. However, lingering concerns over inflation, geopolitical risks, and increasing demand from central banks and investors seeking diversification have supported prices to some extent. As a result, gold prices have been relatively range-bound, fluctuating between $1,700 and $1,900 per ounce.