David Morgan, an investment consultant in the precious metals industry, is predicting that gold prices are set to skyrocket. He believes that, despite its volatile nature, the metal is about to break out from its current low range and surge substantially across the globe.
To support his prediction, David Morgan points to the three-month gold chart which shows that the prices of gold have been trending higher since February. That is a good sign according to him as it implies that a Gold price breakout is around the corner. He further proposes that there may be some investor’s buying gold soon in anticipation for the breakout to occur soon.
The gold price has been highly volatile in the past couple of months and much of this volatility has been the result of the instability of the global economic environment. Nervous investors have been spooked and subsequently, gold prices have fallen as investors look for safe havens. It is clear, therefore, that gold prices have pivoted upwards.
However, David Morgan acknowledges that there is still a possibility of fake out in the gold prices. This would be narrated by David Morgan as a sharp rise of gold prices, followed by a much steeper decline. This would be a scenario in which gold prices shoot up and then crash back down, leaving investors worse off than they were before they bought.
Overall, while David Morgan is confident that a gold price breakout is imminent, there is still some potential for there to be a fake out. All investors, of course, should perform their due diligence and research if they want to make a safe and informed investment in the precious metal market.