Market Watch: Gold Prices Doubled in Just Two Years to New Highs. Why it Could Keep Going to $7,000
Article by Cam Hui in Market Watch
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 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 multi-year 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.
For a longer-term perspective of the upside potential in gold, a point-and-figure chart of monthly gold prices, using a 5% box size and 3-box reversal, shows a measured objective of almost $7,000.
I interpret this as an indication that gold’s bull-run has several years to go before it reaches a final top. It’s hard ......