Gold Has Bottomed in 2018, Higher Gold Price Underway
The comments below are an edited and abridged synopsis of an article by Taki Tsaklanos
Investing Haven is on record as calling for a higher gold price in 2018, and it feels certain the gold market bottom was set on August 15, 2018. Here’s why:
First, gold is typically weak in the summer.
Second, and more important, is the futures market setup. It became worse from August 14 to August 21, 2018. The gold price of $1,165 on August 14, 2018 is supposed to be the gold market bottom of the year because of the rarely seen before futures market positions.
So how does the gold price play out in 2018?
Tsaklanos refers to a piece written 2 months ago and reproduced here: “Gold Price: Short Term Bearish, Medium Term Strongly Bullish.” In short, there is a big cup-and-handle formation in the gold market. The bottom of the cup was set in December 2015; the bottom of the handle was set on August 15, 2018. This is a huge consolidation pattern that, most likely, will mark the end of a 7-year bear market.
Now is the time to accumulate gold and silver.