Saturday, February 17, 2018 3:21 PM EDT
Will gold enter a bull market in 2018? The likely answer is “yes, a gold bull market is likely to start in 2018” even if our gold price forecast 2018 which we wrote many months ago was rather bearish.
It is OK to change your opinion or a prediction over time. As more data points become apparent, and as chart patterns and chart trends evolve, it makes perfect sense to not rigidly stick to a previous prediction.
As said already a couple of times we are switching our stance against gold because the market environment is changing, and because gold held strong at its important $1225 level.
The likely path is, as per our latest gold article, that gold will trade sideways for a while. However, we anticipate it will be maximum a couple of months, and maybe around summertime in 2018 a new gold bull market may start.
The gold chart below makes our point.
Gold bull market in 2018? Likely, yes
Traditionally, the rounding bottom pattern is bullish. It has a 65% probability of a bullish breakout. The long consolidation of 4.5 years is even increasing the odds. However, it the price of gold breaks down (below the rounding bottom) it will be strongly bearish! We will find out sooner rather than later.
From an intermarket perspective we observe all trends moving in the same direction: “risk on” and inflationary. That is a great market environment for gold to thrive. Back in 2004 until 2007, as well as 2010-2011, we saw the same market conditions. Gold did extremely well in those periods of time.
This is another great case of taking financial mainstream media articles for what they are: articles. According to this MarketWatch gold article gold thrives during inflationary times. Though their timeframe is ultra short, and those type of correlations do NOT work on such small timeframes, it is inflation with “risk on” that is a great environment for gold.
Disclaimer: InvestingHaven.com makes every effort to ensure that the information provided is complete, correct, accurate and ...
more
Disclaimer: InvestingHaven.com makes every effort to ensure that the information provided is complete, correct, accurate and updated.In spite of these efforts, errors may occur in the information provided.If the information provided contains errors or if certain information is not available on or via the site, InvestingHaven.com will make every effort to rectify the situation as soon as possible. However, InvestingHaven.com cannot be held liable for direct or indirect damages resulting from the use of the information on this site. If you notice any errors in the information provided via the site, please contact the manager of the site.
Moreover, the views expressed in the articles (posts) on this website are the ones from the authors and are for information only. It is not intended as an offer, invitation, or solicitation to buy or sell any of any security or asset described. Nor the website manager nor the authors do accept any liability whatsoever for any direct or consequential loss arising from the use of their content. Please consult a qualified financial advisor before making investments. The information on this website and in the articles (posts) is believed to be reliable , but the authors do not make any representations as to its accuracy or completeness.
The content of the site (including links) may be adjusted, changed or expanded at any time without notice. InvestingHaven.com does not guarantee the proper functioning of the website and cannot be held liable in any way for the improper functioning or temporary (un)availability of the website or for any form of damage, direct or indirect, which may be the result of access to or use of the website.
InvestingHaven.com cannot be held liable under any circumstances by anyone, directly or indirectly, in any specific or other way, for damages resulting from the use of this site or any other site connected by means of links or hyperlinks, including, without limitation, any losses, interruptions of work, damage to programmes or other information on the computer system or to equipment, software or other items owned by the user.
less
How did you like this article? Let us know so we can better customize your reading experience.