For those who were watching gold over the last three months, all said the exact same thing, “I’m tired of watching it and waiting for it to move.”
Awakened from its slumber, gold is up sharply today gaining 1 ½% to move to its highest level since Nov 22, 2021. It is also up on a 5-day basis, 1-month, 3-month, and year-to-date basis, too. The same is true for silver. Silver will also rally – there’s never been a gold bull market that wasn’t joined by a silver bull market – but gold’s technicals are in superior position vs. silver. Gold’s Technical Score is 3 while Silver’s Technical Score is 2.
We reviewed gold in detail in Bling, Yo! (January 2, 2021) and The Golden Ticket (Nov 16, 2021) and continue to believe the metal will make a new all-time high. Gold’s monthly set-up is at confluence of a Brobdingnagian BASE (our raison d’etre) and a Brobdingnagian Cup & Handle. The nomenclature might be embarrassingly humorous, but breakouts from Brobdingnagian BASES are the lift -off phases to tenured upside moves and William O’Neil has had a career of winners that included many Cup & Handle set-ups.
Gold – Monthly w/ 12-Month Moving Average and Monthly MACD
Not only is gold now showing some chutzpah on an absolute basis, but it is on a 3-month winning streak relative to Bitcoin and at a 7-month high versus NASDAQ.
Gold is above its upward-sloping 50-, 100-, and 200-day moving averages and, since it is only rubbing the sleep out of its eyes, is not remotely close to being overbought on our daily or weekly momentum work.
Buy some gold here and buy some more gold on any consolidation or pullback. Almost “nobody” owns it, almost “nobody” is still around who ever made real money in gold, and almost “nobody” will remember a seemingly apropos old English proverb (aren’t all English proverbs old?) that goes like this, “When we have gold we are in fear, when we have none, we are in danger.”
Gold – Weekly w/ 40-Week Moving Average, Weekly MACD, and Rel. to S&P
