Since last night until this morning, gold has continuously set new record highs, reaching $3,977/ounce — the highest level in history.
The reason behind this explosive rally is believed to come from China, as the country continues to stockpile gold for the 11th consecutive month with no signs of stopping.
Additionally, China has recently discovered two large gold mines, further boosting its reserves and driving investor gold-buying frenzy to new peaks.
On the other hand, tensions between Venezuela and the U.S. are escalating with the risk of military conflict, as peace negotiations have not gone smoothly and the U.S. plans to take tougher action to end drug trafficking from Venezuela.
Donald Trump openly called Venezuela’s president, Mr. Maduro, an illegitimate leader and raised the bounty on his capture to $50 million.
Gold shows no signs of declining, at least for October, as demand remains extremely high and the threat of war continues. Therefore, $4,000/ounce could be the level gold reaches this week, and it may even hit $4,100/ounce later this month.
Technical Analysis:
In the short term, the rise of gold to $4,000/ounce is almost certain => Look to Buy and keep Buying. Possible BUY zones:
1: $3,950/ounce.
2: In case of a strong correction, consider BUY between $3,926 – $3,930.
Trí Hùng
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