Since the early years, gold has been considered a valuable asset in the market. The asset showed an approximate 35% annual return that is between 1973 and 1979, respectively. At this moment, the U.S. annual inflation was ranging at 8.8% percent.
Co-founder of brokerage firm DeCarley Trading going by the name Carley Garner recently discussed how gold has been holding critical support levels and that new levels may be soon seen on the asset as it moves to all-time new highs in the market as the dollar continues to lose its strength.
Garner said:
”If we break below that support level, we are probably going back towards the mid-nineties and if that’s the case, that’s a game changer for gold. Suddenly, we are not looking at $2,000 gold but new all-time highs.”
Kitco News, Carley predicted that if the US dollar index (DXY) is to face any resistance before reaching 105 points. At the moment the dollar is at 104.9. Furthermore, if it gets involved in a decline toward the 99 area, other assets may rise against it.
Carley has great hope for the potential of gold to surge in price. She, however, said that should the dollar hesitate in showing positive moments, gold may soar to $26,000 per ounce according to her estimations.
The Federal Reserve is currently on watch by market participants to see the central bank’s next move, and indicators suggest a high likelihood that rates will remain unchanged this month.
According to Carley’s latest observations, despite the fact that U.S. bonds are approaching 15-year highs and concerns about a recession are looming, gold has shown resilience in the market. A peak in Treasury yields would also remove a barrier for gold, according to the analyst.
In Addition to that, Garner also added that we are“sitting on the biggest net short bonds on record” and commented that the points are likely to unveil themselves within no time. Garner is bullish on gold despite the fact that the precious metal may decline if bearish momentum picks up.
