Has Gold Finally Bottomed? – Investing.com

Has Gold Finally Bottomed? – Investing.com

Enthusiastic gold investors everywhere are wondering: Has gold finally bottomed?

The short answer is: I think so.

That's because, from a number of perspectives, it seems the most likely scenario. Right now most of the evidence points in that direction.

A dramatic rip higher from March to August last year caused to soar by 40% in just five months. It also allowed gold to establish a new nominal all-time record high at $2,070.

Since then gold's been retracing, giving up about half of those gains. Two major drivers led to this: sentiment and the dollar. At this point, however, it seems both factors may have run their course, setting up gold and gold stocks for a new rally.

Let's examine the current outlook to formulate what's most likely ahead.

Negative Gold Sentiment Exhausted

Markets ebb and flow, and gold is certainly no exception. The dramatic rise last spring and summer was likely driven by fear as the impact of the COVID-19 pandemic was being assessed.

One of gold's biggest attractions is obviously as a safe haven, a role it's played for thousands of years. And last year was an excellent example. But as the world grew accustomed to its new reality, that meant other drivers took center