An Exceptional Gold Price Historic Chart Over 40 Years

Long term charts are crucial because they show dominant trends. The gold price chart over 40 years is the one with the most historic data. It reveals an exceptional pattern not seen on any other historic gold price chart: a historic rising channel with several subchannels which can help us in forecasting gold price. It confirms our gold price forecast 2019.

Most investors tend to forget the importance of long term charts. It is so easy to get caught up in the endless stream of gold price news. Not that we consider this to be the reference but just as an illustration we refer to this gold news stream or simply the Google gold price feed.

The big problem with short term gold price analysis as well as short term oriented gold news is that it distracts from what really matters, i.e. dominant gold price trends.

When it comes to gold we would argue that the most dominant trend is visible on the historic 40 years gold price chart.

The importance of any gold price historic chart

It is crucial to always take a top down approach, in any market and for any investment. That’s because the most dominant trends are visible on historic charts. These dominant trends influence both long and short term trends.

In the ideal world the longer term charts confirm the shorter term charts. So say that the gold price historic chart on 40 years shows a pattern in which the gold price is moving, and there is a similar conclusion from the 10 year and 2 year gold price chart it would classify as a ‘confirmation’ of the different time frames. That’s re-assuring.

The opposite is true as well, and here it becomes interesting. If the gold price historic chart on 40 years suggests that the gold price is heading into secular resistance but the 2 year chart shows a totally different picture then we talk about ‘divergence’. This is always tricky, as time frames are not aligned. In such a scenario we prefer to give the market time to show a direction.

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