Investors and gold traders have been closely following the price of gold since the start of 2021. Many have been wondering if the gold price, which is currently hovering around the $1800 mark, is in the midst of a breakout or a fake out.
To gain insight into this question, it is to the benefit of investors and traders to review the latest comments from noted gold market specialist David Morgan, who is considered an authority on the subject matter.
In a recent interview, Mr. Morgan stated that although gold has been consolidating at a level close to $1800 for some time, it is not necessarily breaking out. According to him, investors should take into account a number of factors before judging the current trend.
First, Mr. Morgan advised that investors should consider a number of macroeconomic and geopolitical risks that are influencing the gold price. This includes signs of potential inflation, global decoupling, US-China trade tensions, and more.
Second, the investor suggested that the recent trend in gold has been fueled largely by the rotation of investor funds from the stock market into other asset classes. In particular, Bitcoin and gold have seen increasing investment as of late due to the demand for a safe-haven asset.
Finally, Mr. Morgan advised that traders and investors should remain patient when assessing gold. He noted that gold has been consolidating for some time now and a breakout could only happen if there is a change in investor sentiment or a trigger of external economic or geopolitical news.
All in all, Mr. Morgan’s comments suggest that investors should be wary of predicting a classic breakout in the gold price just yet as there are still a number of factors that need to be taken into account before a solid conclusion can be drawn. His advice should be closely followed for investors or traders expecting to capitalize from the gold market.