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It's 'Breakout' Time

Commentaries & Views

There comes a time, after you watch the precious metals meander slowly upward, when suddenly there is a burst of energy that propels them rapidly higher.  On Friday we watched the entire precious metals complex react positively to a bout of weakness in the US dollar index.                      

 Charts are courtesy Stockcharts.com unless indicated.

This chart features GLD, a gold ETF.  The number ‘4’ alerts us to the latest upside breakout.  If history repeats, we can expect a rise very similar to the three preceding breakouts.  The supporting indicators are positive with room to rise.  The 50DMA (blue line) has just completed a ‘bullish crossover’ with the 200DMA (red line).  This usually motivates many investors to get ‘on board’.

This chart is courtesy sources listed and it shows the supply of gold bullion is expected to decline.  In fact ‘peak gold’ at major producers happened in 2015.

Peter Degraaf is an investor with over 50 years of experience. Google him, or visit www.pdegraaf.com

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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