If one wasn’t quite convinced of the powerful move precious metals (and miners) have made over the past nine months, look no further than the triple-bearish ETF symbol DUST, which moves inversely to miners:

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Perhaps some people think it would be a good play to fade this move and take advantage of a snapback rally. I don’t think so. Looking at the continuous contract of gold futures, it seems to be a very handsome base has formed, and instead of beating a hasty retreat, gold seems poised to make a measured move to about $1650.

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For some context, look at the last instance when a base of approximately this shape was completed. Pretty handsome rally following that, wouldn’t you agree? So, even beyond the 1650 target, it could well be that substantially higher prices than that are in store as we move into 2020.

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