{"id":93326,"date":"2023-07-26T10:40:28","date_gmt":"2023-07-26T08:40:28","guid":{"rendered":"https:\/\/investmentbell.com\/?p=93326"},"modified":"2023-07-26T10:41:32","modified_gmt":"2023-07-26T08:41:32","slug":"golds-most-bullish-setup-in-50-years","status":"publish","type":"post","link":"https:\/\/investmentbell.com\/id\/analysis\/commodities\/golds-most-bullish-setup-in-50-years\/","title":{"rendered":"Gold\u2019s Most Bullish Setup in 50 Years"},"content":{"rendered":"

Emas<\/a><\/span>\u2019s Most Bullish Setup in 50 Years<\/p>\n

Gold is at a very important juncture in its history. It has formed a bullish cup and handle pattern and a now 12-year-long base. Cup and handle patterns are among technical analysis’s most reliably bullish patterns. Furthermore, multi-decade-long bases tend to give way to multi-year and multi-decade rises. The setup is in place for a very exciting Gold market over the years and decades ahead. In past lessons, I explained the importance of Intermarket analysis for Gold and the entire precious metals sector.<\/p>\n

Gold must outperform the stock market and other asset classes to be in a secular bull market. In recent years Gold has trended higher but not outperformed the stock market, and as a result, the precious metals sector (the mining stocks and Silver especially) has remained in a secular bear market.<\/p>\n

This cup and handle pattern is stronger than typical because the right side of the cup, having reached ~$2050\/oz, is higher than the left side, the 2011 peak of $1920\/oz. Also, the handle, for other than a few weeks, has consolidated above its 38% retracement in the upper $1600s. The measured upside target is around $3,000\/oz, while the log target is approximately $4,000\/oz.<\/p>\n

To summarize this lesson, Gold remains in a super-bullish base and cup and handle pattern that will lead to an explosive upside move once Gold outperforms the stock market and conventional 60\/40 portfolio. The inevitable breakout for Gold may require another 12 to 18 months to occur, which in terms of time, would match the length of the bases in the\u00a0S&P 500<\/a><\/span>\u00a0from 1937 to 1950, 1968 to 1981, and 2000 to 2013, and the base in the\u00a0Hang Seng<\/a><\/span>\u00a0(Hong Kong) from 1973 to 1986.<\/p>\n

It is essential to understand that while the breakout will have super bullish implications for Gold in the first few years that follow, it will mark the start of a new secular bull market in Gold. Breakouts from these long bases lead to advances that last at least a decade.<\/p>\n

[video width=”1280″ height=”720″ mp4=”https:\/\/investmentbell.com\/wp-content\/uploads\/2023\/07\/Golds-Most-Bullish-Setup-in-50-Years-Lesson-5-Video-1_2.mp4″][\/video]<\/p>\n

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