Gold 7-year bear market phase over
“Thursday last week was a momentous day for the Precious Metals sector with gold, GDX and other índices, and giant gold ETF, GLD all breaking out on impressive volume, and this development was all the more extraordinary because it happened when the broad stockmarket was crashing. This is viewed as a strong sign that instead of being dragged lower still by a crashing stockmarket, the PM sector will soar. Silver hasn’t broken out yet, but it should soon follow suit.”
USAGOLD note: Clive Maund sees the technical factors lining-up in gold’s favor and a couple of major differences between now and 2008 when gold declined at the start of a financial crisis. One is currently depressed price levels compared to elevated levels in 2008. The other is a “grimmer” long term outlook for gold based on geopolitical factors. Details at the link. . . . . .