Gold closed the week with a gain of 1.55 percent. The price of gold rose from $1125 at year-end to $1258 today, a rally of 11 percent in 7 weeks. Gold remains in a long term bear market but is only 8 percent away from turning into a secular bull market.
From a tactical perspective, short to medium term, we explained recently Why $1220 Gold Is So Important. The gold price chart below makes that point. A falling trendline crossed the $1220 level. From a short term perspective, gold is bullish right now.
From a secular perspective, say longer term, gold has to break above $1350 for at least 3 consecutive weeks in order to be in a secular bull market. InvestingHaven’s research team made a Gold Price Forecast For 2017 which was bearish for the first period of the year. As long as gold remains below $1350 it is in a bear market.
The $1350 is, by far, the most important price level that gold investors are watching. That price level is the line in the sand to determine whether gold is in a bull vs bear market.That is in line one of the important insights on gold’s price chart: not all price points are equally important but a minority of prices have an above average importance, according to InvestingHaven.
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Gold miners are often said to be leading the metals higher or lower. Even with a decent performance in the price of gold we observe rather weak performance in the gold mining space. Gold miners are stuck between major support and resistance on the daily chart, as shown below. InvestingHaven makes the point that in-between those important area’s (indicated in purple) gold miners are neutral, not bullish nor bearish.
(Click on image to enlarge)
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