“I think there is a high probability that the upward breakout (for gold) will take place very soon.” I wrote this under the heading “Gold price on the rise” in my crisis-proof investing weekly update of June 20, 2020. This upward outbreak has now taken place.
Special momentum indicators show the way
My bullish forecast was mainly based on a few special momentum indicators that play a big role in my analysis. Together with the sentiment indicators, they signaled the end of consolidation soon.
Bullish: Gold breaks out of triangle formation
A look at the chart gave an additional bullish hint. Because a simple rule of the chart technique says that triangular formations are usually trend confirming.
The following gold chart shows the triangle formation that had developed during the eight-week consolidation phase. Since the triangle was preceded by an upward trend, it could be expected to continue. This continuation was initiated with the upward eruption.
Gold price per ounce in $, 2019 to 2020
The forecast breakout from the triangle shown has now occurred, an all-round bullish development.
Short-term price target $ 2,000 an ounce
Interestingly, the triangle shown is only part of a larger formation, the upper limit of which we indicated in the chart with a dotted line. With the rise above this line, the formation ended in April of this year. This was followed by the consolidation of the steep price increase, which is now over.
The entire formation has a short-term price target of $ 1,950 to $ 2,050 an ounce. This goal coincides with the forecast of our gold price band indicator, not shown here, whose upper price band runs in this area.
These gold mine shares belong in your portfolio!
Another confirmation of my bullish gold forecast comes from gold mining stocks. First, the Gold Miners Index has given a clear and strong buy signal with long-term importance. Second, some gold mining stocks have an extremely bullish course.
In my issue of Crisis Safe Investing, which will be published on June 29th, I will focus on the issue I discuss the Gold Miners Index in detail and show you which stocks now belong in your portfolio. Here you will find exceptionally attractive opportunities that you should take advantage of. Test my stock exchange crisis-proof investment now for 30 days free of charge.
I wish you a nice weekend,
Claus Vogt, editor-in-chief, crisis-proof investing
P.S .: Slowly, the dubious role that central banks play in redistributing wealth is finding its way into the public eye. Roland Leuschels and my new book “The Wealth Destroyers” is more current than ever.
P.P.S .: If you want to get through this crisis safely every week, please request the free Claus Vogt market comment here today easily with your email.
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