Nobody is paying attention to gold these days as bitcoin and other cryptoassets have stolen gold’s gleam. Meanwhile, gold is mounting a quiet rally and that’s a very good sign for our favorite metal.

We’ve been bullish on gold for well over a year now and so far, we haven’t been disappointed. Since we last alerted you to the stealth rally in gold just six weeks ago, the price of gold has risen over 5%. This is almost as much as the well-publicized move higher in the S&P 500 over the same period of time.

The Data

Gold triggered a Stock State Indicator (SSI) Entry Signal last April and has slowly been moving higher. The high for the past year was in September at $1,346 and it looks as if gold may well push past this soon, which would be a very encouraging sign.

Gold triggered Stock State Indicator Entry Signal in April 2017
The volume-at-price (VAP) chart for gold shows this most recent break above $1,300. It’s the fifth time since 2014 that gold has pushed above this strong resistance level. Each time before, it has come back down. Could this time be the one that finally pushes gold back above $1,400?

Volume-at-chart reveals gold has recently pushed past $1,300 for fifth time since 2014

We think so.

The Takeaway

The time-cycle forecast for gold supports the continuation of the uptrend. The forecast that we published last March has been very accurate.

Time-cycle forecast for gold supports continuation of uptrend
If the forecast continues to be accurate, we could see gold move higher for the next 7-8 months.

 Could gold move higher over the next 7 – 8 months?
The price of gold is heavily correlated to the price of the US dollar. They have an inverse relationship. As the dollar has been dropping, the price of gold has been rising.

 Gold and the US Dollar have an inverse relationship

There’s a good chance that this inverse relationship will continue in gold’s favor.

Next week, we’ll look at how this rally in gold has affected the gold miners and see if there are any opportunities that could be advantageous for investors.

The winds seem to be lined up behind gold’s sails and we could see it cross the $1,400 mark in the near future. The continuing focus on cryptocurrencies should allow gold to stay under the radar for a while. Under the radar and moving higher is a good combination.

Have a good weekend,

Richard_Signature

Richard Smith, PhD
CEO & Founder, TradeStops