Saturday , 18 November 2017


Gold Going Beyond $3,000/ozt; Gold Miners/Gold Ratio To Double!

The next leg up for Gold is officially here. Gold has broken out of the mother of allgold rise triangle patterns established by the long-term bull market trendline established in 2006. Its 7-year descending line from the 2010 peak is illustrated in the chart below.

 

This article is an edited ([ ]) and revised (…) version of the original (written by Graham Summers) to ensure a faster & easier read. It may be re-posted as long as it includes a hyperlink back to this revised version to avoid copyright infringement.

gold trendline

Of course, things won’t be moving in a straight line from here but the upside target for this formation is well north of $3,000 in the next few years (again, remember this formation took over a decade to form).

We get confirmation of this from the Gold Miners to Gold ratio (GDX: GLD). Think of this as a measure of Gold beta as Gold Miners typically lead the precious metal during major moves.

With that in mind, consider that the Gold Miners to Gold ratio has broken out of a bullish falling wedge pattern running back in 2007. This is MASSIVELY bullish and predicts the ratio moving to 0.45.

GDX trendline

Conclusion

Put another way, Gold is going to be moving sharply higher – and Gold Miners are going to be going through the ROOF. If you’re not taking steps to actively profit from this, it’s time to get a move on.

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Related Article:

1. These 5 Charts Support a Bullish Gold Thesis – Take A Look!

The best way to maximize market profits is to identify the direction of the primary trend and position yourself with it. This post looks at five charts which analyze the long term trend and prospects for gold and they all support the long term trend in the gold price. Take a look.

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