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Outside the Box
‘Sell America’ trade leaves gold buyers with just one question: How much?
Published:
I am reiterating my bullish view on gold. Gold staged an upside breakout through a cup-and-handle pattern at $2,100 in early 2024 and hasn’t looked back. Moreover, it has staged upside relative breakouts against both the S&P 500 SPX and a 60%-stock/40%-bond portfolio, and it has stayed above the relative breakout levels even after its recent pullback.
The technical pattern of multiyear bases and subsequent absolute and relative breakouts is highly reminiscent of the pattern experienced by gold at the start of the century, which took the yellow metal from its breakout at $500 in 2004 to significantly higher prices.
This post was originally published on Market Watch
