Opportunity Knocks… Will Gold Bulls Answer?

Gold investors have enjoyed a strong start to 2018.

After a brief pullback into early February, the shiny metal has charged higher once more.

The question now: Is a major breakout on the way for gold and precious metals bulls?

Looking at the chart below, you can see that a strong base has been built in both Gold prices and the XAU Index (Gold and Silver Miners). These bases look very similar and have take a few years to build… so IF both breakout at the same time, it would be rather bullish for precious metals.

This is a big spot for metal heads!

gold price pattern bullish cup handle chart_february 16

At the same time, Gold bulls need Silver to play along. Silver offers a higher beta and is typically seen as “risk on” when outperforming.

Currently, the Silver/Gold ratio is testing a confluence of price support:  its 27-year rising channel and 2003 & 2008 price lows.  Bulls need to see this support hold, followed by a strong move to the upside.  Stay tuned!

silver gold ratio performance chart price support bullish_february 16

 

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Twitter:  @KimbleCharting

Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

 

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