This Will Confirm The Gold Bull Market / Commodities / Gold & Silver 2019

Gold is moving closer to confirming amulti-year bull market per my long-term comparison. A decisive mover higherthan the $1375 area would be confirmation of the bull.

Below, is the updated long-term comparison:

I have marked two fractals (patterns) 1to 5, to show how they might be similar. I have also marked the point whereinterest rates peaked (in 1981), and where they probably bottomed (in 2016).

If the comparison with the 1980s patternis justified, and the current pattern continues in a similar fashion, then goldwill continue in a long bear market. However, there are just too manyfundamental obstacles to such a scenario, with the state of interest ratesbeing one of them.

A breakout at the top red line (the highat point 5 – $1 375) would almost certainly signal or confirm the bull market.This would be divergence from the 1980s pattern, and likely cause prices torise really fast once the breakout is confirmed (when dealing with fractals,the biggest price movements occur when two fractals diverge – a breakout at thetop red line is a divergence).

A breakdown at the bottom red line, couldmean that prices will continue to follow the 1980s pattern, and go lower than$1000. Which would mean we will have to wait many years (even a decade) for thenext gold bull market (very unlikely).

It is my opinion that due to the factthat the early 80s pattern occurred around a long-term interest rate peak, andthe current one around an interest rate bottom, the two exist in completelydifferent economic conditions.

The current economic conditions are idealfor higher gold prices (as previously explained), and this is what we will likely getover the next couple of years.

For more on this and this kind of fractalanalysis, you are welcome to subscribe to my premium service.

I have also recently completed a Silver Fractal Analysis Report as well as a Gold Fractal Analysis Report. You can also subscribe to this blog (enter email at thetop right of this page) to get my regular free gold and silver updates.

Warm regards,

Hubert

“And it shall come to pass, that whosoevershall call on the name of the Lord shall be saved”

http://hubertmoolman.wordpress.com/

You can email any comments to hubert@hgmandassociates.co.za

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