Market Analysis – Will We See Gold Hit $3000?

Weekly AMA on Instagram - Ask me anything about trading & investing, stock picks, market analysis, etc!

After seeing negative prices in Crude Oil futures, will oil prices stay depressed, or will they recover any time soon?

With stock markets unclear, and the US dollar fluctuating wildly, is Gold a good long-term investment now?

Join our FREE Telegram channel for daily trading tips:
?? https://t.me/synapsetrading

Market Overview

Looking at the “Daily Trend Analysis” on our Telegram channel, we can see that the most bullish counters are Gold (XAUUSD) and the US Dollar Index (USDIDX), whereas the most bearish counters are Brent (BCOUSD) and Crude Oil (WTIUSD).

The stock markets are pretty mixed, with most indices either being in a weak bear trend, or ranging.

Can Gold Hit $3000?

According to analysts from the Bank of America, they now have an 18-month target of $3000 for Gold, which seems pretty bullish, considering we have not even cleared $2000 yet.

Normally, it is quite rare for the USD and Gold to trend strongly in the same direction, but we are seeing it now.

In the short/medium-term, since USD is a reserve currency, it is in demand when liquidity dries up, whoever with the aggressive money printing, it might decline in the long run.

As proposed by Ray Dalio, we are nearing the end of a 75-year debt cycle, which could see massive deleveraging and devaluation of the US Dollar. If that happens, then it will definitely be bullish for Gold.

This is the reason I have been actively adding Gold to my long-term portfolio.

Normally, commodities tend to lag Gold, and eventually “catch up” once inflation kicks in, however this time demand is at an all-time low.

We have had great success buying the dips on Gold, and our most recent trading positions are already in the money. ???

Will continue to hold for more upside.

How Long Will Oil Stay Cheap?

After seeing the May Crude Oil futures hit negative, traders are getting spooked for the June contracts, because they are afraid the same thing will happen if the lockdown is still in force, and demand remains low.

Looking at the virus numbers, the possibility is high.

Even if the lockdown does end, there is too much pent-up supply, and a lack of storage.

Hence prices could remain low or continue falling.

We have taken full profit on our crude oil shorts, and will not be taking any new positions for the time being, since many brokers do not allow new positions to be initiated due to the liquidity.

This has turned out to be one of the most profitable trades of the year. ???

< h2>Ranging Stock Markets

Lastly, for the stock market, I would say I am 65% bearish, and 35% bullish.

Since there are no clear signs, I will testing the waters with small positions, but will not be taking any large positions yet.

Stay tuned in our Telegram channel to continue monitoring the stock market for the right time.

Start Your Trading Journey Today!

If you are interested to start your journey with our closely-knit community, click on the link below: https://synapsetrading.com/the-synapse-program/

Here is some feedback from our students:

“Great course. I have studied about candlesticks and chart patterns before attending the course. However, not able to put them together to make consistent result. This course really stitch together and show me how to combine all the knowledge that I have learnt.” – Kyaw Zaw Than

“Course was comprehensive with clear explanation for each strategy taught. Good amount of case study to discuss for better understanding.” – Ethan

“Spencer is extremely detailed and methodical in his explanation. Program is extremely comprehensive.” – Tessa Ong

“Before this I learnt a lot of strategies from books and friends – After this programme I learnt to stick to one and profit.” – Rahim, Freelance Artist

“Trading made simple with only a few setup to master and focus on. Not too much information overload.” – Jude

See you on the inside! ?

New to Trading? Make your first live trade today in this workshop! Meet Spencer live for 3 hours of hands-on training! No prior experience required! Learn all the basics of trading, and step-by-step guidance to make your first trade!

If you're looking for the best trading opportunities every day across various markets, and don't want to spend hours doing the research yourself, check out our private Telegram channel!

Spencer Li

Spencer is an avid globetrotter who achieved financial freedom in his 20s, while trading & teaching across 70+ countries. As a former professional trader in private equity and proprietary funds, he has over 15 years of market experience, and has been featured on more than 20 occasions in the media.