Gold ... an interesting chart

The chart of gold is showing an interesting pattern (click on the chart to enlarge it).

The conclusion seems to be the opposite of what is happening to the bank stocks (see previous post).

Gold has been on a rising trend since April, as reflected by the direction of the trendline A.

The interesting pattern is provided by the trendline B. the duration of the trendline is almost 7 months. Its violation on the upside, based on past experience, could be meaningful.

Gold is in the process of breaking on the upside trendline B. It might set the technical stage for a strong rally in this important metal.

To find out more about my in depth view of the markets and my strategy just visit our website https://www.peterdag.com/ where you can review The Peter Dag Portfolio. You can also call me at 1-800-833-2782 to discuss your specific money management needs.

I will be happy to speak to your investment group on how the business cycle impacts investment strategies and the choice of asset classes.

George Dagnino, PhD
Editor, since 1977