It's 'Breakout' Time
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
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