Gold About To Break Through $1900, Set New All-Time High

David Dierking

After a nearly steady two-year climb, gold prices look like they're finally going to break through all-time highs last set in 2011.

Gold_About_To_Break_Through_1900_Set_New-5f19ad867e8c350ae07dc077_1_Jul_23_2020_15_57_15_poster

The start of the current rally began when gold was trading at around $1200 in August 2018. As of the time I write this, gold is just a bit below the $1900. This would mark a nearly 9-year high for the metal and put it about $30 away from setting a new all-time high.

GCQ20_Barchart_Interactive_Chart_07_23_2020

At this point, it feels like a new all-time high is imminent and the big question becomes how soon it can break through the $2000 level.

I think it's easy to get caught up in the current euphoria, but rallies seldom occur in straight lines. The current environment certainly supports higher gold and silver prices, even after the latest push higher, but it's important to temper expectations a bit too.

I think it's more likely than not that gold hits $2000 at some point before the end of this year.

Higher inflation expectations, political tensions, a falling dollar and COVID-fueled economic concerns are all fueling demand here.

A number of gold ETFs have posted big gains this year. The SPDR Gold Trust (GLD), the SPDR Gold MiniShares Trust (GLDM), the iShares Gold Trust (IAU) and the GraniteShares Gold Shares Trust (BAR) are all up more than 20%.

Gold miners stocks have also done very well. The VanEck Vectors Gold Miners ETF (GDX) and the VanEck Vectors Junior Gold Miners ETF (GDXJ) are both up more than 40% year-to-date overall and more than 100% since the March low.

Gold (and silver) remain buys here and I expect further upside in 2020. Click HERE for my latest look at silver as well.

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