Gold trends upward in its rally [Ryuji Sato]
Ryuuji Sato Profile
Sato Ryuuji. Born in 1968. After graduating from a U.S. university in 1993, he joined Genesis Corporation (later Oval Next) after working at a marketing firm, later known as a financial and investment information vendor. He writes analyst reports on macroeconomic analysis, currency exchange, commodities, and stock markets, and engages in trading. In 2010, he founded “H-Square Co., Ltd.”, writing analyst reports and planning/publishing publications such as “FOREX NOTE Currency Notebook,” while also serving as a radio program caster related to investments. An individual trader. Certified Technical Analyst by the International Federation of Technical Analysts. Main caster on Radio Nikkei’s “The Money Onosato’s Market Forecast” (Mondays 15:00–).
Official Site:Sato Ryuuji Blog
※This article is a republication and editing of an article from FX攻略.com, September 2020 issue. Please note that the market information written in the body may differ from the current market.
Fluctuating but overall rising trend
Gold has moved into an upward chase phase. In the November 2019 issue of this magazine, it was stated, “Will it target the $1,600 level?” but it has already surpassed that level, climbing to the $1,770s and hitting eight-year highs. In Japan, domestic gold retail prices have risen to the highest in 40 years, around the 61,00 yen level. Since last year, many factors have continued to support gold prices. This time, let’s consider the upside of this continuing uptrend in gold.
First, let us look at gold price movements from the beginning of the year (refer to Chart ①). This year, trading began around $1,517. On January 3, after the U.S. military killed Iranian General Soleimani in Iraq, markets moved to risk-off, with gold, the yen, and U.S. Treasuries being bought, pushing gold past the key level of $1,550. On the 8th of the same month, Iran retaliated with strikes against a U.S. military base in Iraq, driving the price up to $1,610, a level not seen since March 2013.
