A while ago, I wrote about a coming confirmation of the multi-year gold bull market. It has taken longer than expected, but that signal has now arrived, and the bull is very much confirmed.
Here is a gold chart indicating that very important signal
I have marked two fractals (patterns) 1 to 5, to show how they might be similar. I have also marked the point where interest rates peaked (in 1981), and where they probably bottomed (in 2016).
The interest rate conditions in which these patterns occur are key to why there are such different outcomes between the two. Once interest rates had bottomed, there were always going be extremely favourable conditions for a gold bull market (read more here).
If the comparison with the 1980s pattern is justified, and the current pattern continues in a similar fashion, then gold will continue in a long bear market. However, as expected, this was not the case since the patterns have now diverged.
The breakout at the top red line (the high at point 5 – $1 375) almost certainly signals or confirms the bull market. This is a divergence from the 1980s pattern, and indicates that prices will rise really fast from hereon. (because when dealing with fractals, the biggest price movements occur when two fractals diverge – a breakout at the top red line is a sure divergence).
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