Yahoo Finance: Collapsing Dollar Could Push Gold to $2300 by May 2021
Article by AG Thorson in Yahoo Finance
I think the dollar is experiencing a meaningful devaluation. Prices are extremely overdue for a bounce, but the trend pushes persistently lower.
The final area of support arrives at the 2018 low of 88.15. If that level fails, I believe the USD could collapse to 80 by April/May 2021.
We are in a similar setup to the post-trendline breakdown of gold in 2002/2003.
Consequently, I believe the dollar is on the verge of an accelerated decline towards 80. The weakening dollar should push gold higher into April/May 2021.
In 2002/2003, the US was coming out of recession, just like now. The recent $900-billion relief package will not be the last. I expect one or two more programs next year – this should continue to deflate the dollar and push hard assets higher.
The 6-month cycle in gold likely bottomed at $1767.20 in November. Prices are climbing the “wall of worry,” and I expect a breakout above the intermediate trendline within the next 1 to 3-weeks.
The minimum target on a breakout is $2300 for this leg higher. Silver and Platinum are leading gold and should outperform ....
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