Gold and gold related assets sold off over the last couple of days. Coming down to close a fairly large gap that was opened up on March 12th. Just as it should have. Remember, all financial markets and individual stocks tend to close their gaps. Sometimes it takes just a few days and sometimes decades. Yet, rest assured, the market will close its gaps. Which indicates a short-term bounce for gold in the near future to re-test it’s March 14th top.
Long-term, gold is very well positioned for a multi year rally. I base this conclusion on my timing and mathematical work and its application to the equity markets. Our mathematical work indicates a fairly strong bear market in the US equity markets between 2014-2017. When the bear market kicks in and the US Economy slips back into a recession, the FED will open up the flood gates…..once again. They will have no other choice.
Since Gold does fairly well in such an environment, we anticipate Gold to break out above 2013 top and keep going for at least a few years as investors seek safety and an inflation hedge. Further, we believe the bull market in gold will resume itself as soon as the bear in equity markets starts. That should happen relatively soon. Today’s technical setup confirms this notion as highly probable. If you would like to know exactly when the bear market in equities will start (to the day), please Click Here
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