Gold attempts to hold above $1900

An earlier article measuring gold's resistance that had been broken, provided on this website, about gold finding a "bottom" from its continuing declining trend after attempting to break towards USD$2100 and being halted ~$2069 on 06/08/2020. Gold had been rising in conjunction with the unprecedented levels of stimulus and central bank policies and government legislation being implemented worldwide by various countries. Locally, Australia had not only carried out government bond-buying programs like in America but also direct purchase of equities to keep the local indices afloat. Gold had ultimately ceased the climbing trend after market sentiment had reached the "risk-off" peaks, with the risk appetite changing through revealing signs such as small-caps, micro-caps, growth or non-defensive equities having capital rotations of new funds being injected.

(Photo by Jingming Pan/Unpslash)

The precious metal has also been rising steadily with others such as iron ore, copper and rhodium. The rallies in these commodity markets might not be directly linked to the electronics sector alone but may also be hedged bets on a potential trend towards how we will continue relying on construction and infrastructure building to diversify the labour pools to ensure many of those made unemployed during the covid-19 bear market crisis of 2020 get back into the workforce to lighten the load of reliance on government welfare or unemployment benefits programs.

(Photo by Curioso Photography/Unsplash)

Due to the gold price soaring in 2020, a lot of gold exploration projects and mining operations had accelerated with keen interests in finding large gold deposits throughout Australia, Canada and parts of South America (while also capitalising on any copper veins they had hit in the process due to the rising demand for copper in electrical devices). The real question is will gold continue its rally towards USD$2000 and break any 2020 highs that been tested towards USD$2100 or higher range? With inflation still running rampant and the FED not getting directly invovled, there is a good chance these levels will be tested this year in 2021.