Gold continues its bullish rally
Over the past two weeks, the precious metals complex has retested its Brexit breakout and rebounded back to the July highs. Today’s jobs report has pushed the complex lower but has delivered an opportunity to cash heavy portfolios, which have missed the bulk of the move. With that said, we wanted to share our current analog charts for gold, gold stocks and junior gold stocks which suggest continued upside potential in the sector.
The first chart plots the current rebound in gold compared to the average of its two strongest cyclical rebounds (1976 and 2008) and the average of four rebounds (including 1976 and 2008) within its secular bull markets. As we can see, the current rebound is closely following the average of the four rebounds. If gold continues to follow that path, then it could reach $1,500 per ounce before the end of the year and retest its all time high of $1,900 per ounce by the end of next year.