Gold prices have been making waves recently, with the price of the precious metal reaching its highest level in more than four years. As investors continue to seek safe havens during times of uncertain market conditions, gold has become a popular investment option.
One of the most prominent investors in gold is David Morgan, financial analyst and founder of Morgan Report. Morgan has long believed that gold could be an important part of any investment portfolio and has been vocal in his outlook of gold as a long-term investment option. Recently, Morgan weighed in on the latest gold price movements, publicly asking whether or not this is a breakout or a fakeout.
In a recent interview, Morgan spoke to the recent surge in gold prices and expressed his thoughts on whether or not this is a breakout or potential fakeout. Specifically, Morgan highlighted the recent volatility in gold prices and noted that while a break of $1,400 or higher could be seen as bullish, real upside could only be seen if the price moved firmly above $1,480.
This is due to the fact that strong resistance is present between the $1,480 and $1,530 levels. Additionally, Morgan noted the strong correlation between the gold price and the U.S. dollar, stating that any additional strength in the U.S. dollar could be a potential headwind for any gold bulls, further cementing the importance of piercing the $1,480 level.
At the same time, Morgan remains hopeful that the current gold prices could be the start of a lasting gold bull market. He believes that the recent macroeconomic shock caused by the coronavirus pandemic could potentially be the catalyst that drives gold prices to new all-time highs. Ultimately, only time will tell whether or not gold prices can finally breach the $1,480 levels and begin a lasting bull market.
In conclusion, David Morgan provides an informative and detailed outlook on the current gold price movements. While only time will tell whether or not gold prices have the potential for a breakout or a fake out, Morgan’s analysis offers ways to evaluate the current situation and prepare for the possibilities. Investors interested in gold should certainly take his advice into account and weigh his analysis against the current macroeconomic landscape.
