Market Watch: Charts Suggest There Could Be a Bull Market in Gold After Eight Lean Years

Article by Sven Henrich in Wall Street Journal Market Watch

Is gold about to go full bull? Let’s check some charts to see.

Before we do, here are some basic price facts: Gold peaked in 2011 at just above $1,900 an ounce. Since then, it’s been an exercise in dread for gold bugs. (Disclosure: I have no positions in gold.)

There are two key trend lines:

• A supporting trend line from the 2008 lows connecting the 2015/2016 lows and the 2018 lows. Price remains above this trend line.

• A trend line that formed resistance off the 2011 and 2012 highs and represented resistance in 2016 and initially in 2017. Price has broken above that trend line in 2017 and has remained there ever since.

Bottom line: Trend-line resistance has been overcome and trend-line support has been affirmed. Combined, those events are supportive of a potentially larger bullish outlook.

To read this article in Wall Street Journal Market Watch in its entirety, click here.