Gold treads in Choppy Waters but open to $3k?

Commodities, including gold, started the week deep in red, extending losses that began late last week. Gold, an asset that's considered the ultimate haven with intrinsic value but isn't interest-bearing, could, however, find itself in choppy water. The USD strengthening and the economy reversing back to normalcy, coupled with rising yields, could see the yellow metal plunge. Still, analysts are confident that gold isn't losing isn't about to lose its luster yet. Technical analysis of the monthly chart suggests strength and a possibility of the asset rallying to $3k.

Details: 

Gold prices on Jan 11 sunk to $1830, a $75 loss for the day. With the absence of follow-through and favorable candlestick arrangement in the monthly chart, some believe that the yellow metal could unwind this week's losses and, in the long term, edge to $3k. Although fundamentals could slow down bulls, the risk of inflation and governments maintaining low-interest rates as they fight the coronavirus may work against buyers' attempts in the immediate term. This, on top of a resurgent greenback, slicing and posting huge gains against commodity currencies like AUD may turn out bearish for gold in the immediate term. 

Impact on Gold Prices: 

Bearish. The world, in the midst of all optimism, is still fighting coronavirus. Resumption to normalcy, therefore, remains a pipedream in some cases. There is an apparent shift, and people will be cautious as governments pour billions as a stimulus. Gold is bullish in the long term, but prices may slightly pullback in the next few weeks, perhaps towards the $1750 zone before correcting higher.

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