By James Rickards The most important piece of evidence that the next great bull market in gold has begun is the technical behavior of the prior bear market itself. Over many decades, commodities rallies have exhibited 50% retracements (bear markets) before resuming their long-term upward trends based on the slow, steady devaluation of the fiat currency in which the commodities are priced. Using the $252 price from August 1999 as a baseline and referencing the September 2011 peak price of $1,900 per ounce, gold gained $1,648 per ounce in the bull market. A 50% retracement of that 12-year rally means a decline of $824 per ounce (i.e., 50% of the $1,648-per-ounce gain), which would put gold at $1,076 per ounce. Guess where gold bottomed? It bottomed at $1,051 per ounce, within 2% of the 50% retracement target. That decline is an almost perfect technical retracement. By itself, this pattern proves nothing without additional confirmatory evidence. This is why w...
from GoldBroker.com https://www.goldbroker.com/news/the-next-great-bull-market-in-gold-has-begun-1250
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