Here’s how gold price could reach $2,000 in 2020

on Apr 15, 2020
  • Gold is up 9% in April, on the way to post the best month since 2011
  • Bill Baruch’s advice is to buy gold on the back of the bullish chart pattern
  • The completion of the inverse head and and shoulders pattern could take the gold price to at least $1,840

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Gold price has been on a tear in April, trading 9% higher in the first two weeks of the month. A respected market analyst now believes that the yellow metal can go as high as $2,000 this year on a specific bullish chart pattern that it had developed over the past few weeks. 

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Fundamental analysis: Buy gold for your portfolio, suggest Baruch

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Bill Baruch, president of the U.S.-based Blue Line Capital, believes that gold can continue to gain for the rest of the year, as the yellow metal is on the way to record the best month since 2011.

“I love gold, and you need some in your portfolio. The charts show an inverse head and shoulders pattern — a beautiful technical pattern that played out through March into April and we’re now breaking out above. It broke out above it,” Baruch said to CNBC.

The inverse head and shoulders pattern that Baruch is talking about (chart below) is a bullish reversal pattern that occurs at the end of a downtrend. It signals that the price action has finished moving lower and it is likely to move higher going forward. 

“I do believe gold over the rest of this year will get to $2,000. The massive liquidity injected by the Federal Reserve, it’s going to support asset prices like equities, but it’s also going to support gold,” noted Baruch.

In case you are interested in investing in gold, Baruch’s advice is to wait for a potential pullback to $1,700, which is around $16 lower than the current gold price. 

“There’s higher to go, but look to a move back to $1,700 as your buying opportunity,” said Baruch.

Technical analysis: Gold price aims higher

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Looking at the chart, the inverse head and shoulders pattern looks quite asymmetrical as the two shoulders are nowhere near the same level. Still, the pattern was activated when the gold price broke above the $1,620 – the neckline – last week. 

Inverse head and shoulders pattern on gold (TradingView)

The upper vertical red line shows that the chart pattern should be completed when gold price reaches $1,840. 

Gold printed the highest levels yesterday since 2012 when it hit the 78.6% Fibonacci retracement, a key short-term target for the bulls. We may now expect a minor pullback as buyers regroup before attempting to complete the inverse head and shoulders pattern in the next leg higher.


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Gold price is trading 9% higher this month on the worsened risk sentiment. Bill Baruch believes that gold can reach $2,000 this year as the bullish chart pattern signals a move to at least $1.840.

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