Gold - The 2020 Gold Rush Is Temporarily Over

Aug. 13, 2020 11:11 AM ETBTC-USD, GLD, PHYS, XAUUSD:CUR, PHYS:CA23 Comments
Florian Grummes profile picture
Florian Grummes


  • Since the corona low Gold gained US$625!
  • But Gold had become extremely overbought and overextended.
  • A clear reversal and a first deep pullback point to a multi-week correction.
  • Next realistic price targets are waiting at US$1,800 and US$1,725.
  • Next real buying opportunity expected to arrive in November or December.

Gold had an unbelievable run over the last few weeks and rushed towards new all-time highs at US$2,075. By clearly outbidding the old high of US$1,920 gold is officially back in a bull-market! However, the move over the last few months had become extremely overextended and Gold started the new trading week with a string reversal and a fast and deep pullback


Since the last significant low at US$1,670 on 5th of June 2020, gold spot prices (XAUUSD:CUR) as well as the SPDR Gold Trust ETF (GLD) and the Sprott Physical Gold Trust (PHYS) have all been able to put on a brilliant performance over the last two months as gold prices have risen by over US$400! Initially, the gold train hesitated to set off on its journey following the weeks of this tenacious sideways phase in April and May.

However, with the sustained breakout above US$1,800, gold bulls became unstoppable. Within three weeks, the price for one troy ounce of gold exploded by over US$270 higher! And this is despite the fact that gold had been already rising from US$1,160 since August 2018 (i.e. for almost two years).

Consequently, there have been new all-time highs almost daily. The former all-time high at US$1,920 was not a hurdle at all. Nor did the psychological round resistance number of US$2,000 show any impact. Instead, the gold bulls drove the prices directly into unknown technical terrain and have so far pushed prices up to a record high of US$2,075.

Silver prices also trumped on a very large scale, reaching the highest level since March 2013 at last Friday's high of US$29.86. This meant that the price for one troy ounce of silver has been risen by a sensational 144.5% since the "corona low" in mid of March.

Last Friday, following another record

This article was written by

Florian Grummes profile picture
Florian Grummes is an independent financial analyst, advisor, consultant, trader & investor as well as an international speaker with more than 25 years of experience in financial markets. Via Midas Touch Consulting he is publishing weekly gold, silver, bitcoin & cryptocurrency analysis for his numerous international readers. Florian is well known for combining technical, fundamental and sentiment analysis into one often accurate conclusion about the markets.

Disclosure: I am/we are long PHYSICAL PRECIOUS METALS. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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