Gold is one of the investments that turned many investors ‘sick’ in 2021. But, the chart suggests that a good outcome is underway in 2022. Perception and fact are not in line, and we said so in our 2022 gold forecast. We believe that gold is not far from completing a bullish reversal, not there yet it might take several more months. It’s improving though, clearly! Our expectation for gold to do well is one of the 2022 forecasts that stand out, followed by our silver forecast and bullish cobalt and graphite expectations.
A trendless market with many sell-off events, that’s how we characterize gold in 2021. It was rough, very rough, especially because all conditions were in place for a summer rally: bond yields came down almost 35%, the USD was flat-ish, stocks were going anywhere. It did not happen though, the gold market was not ready for it.
If you carefully check the gold chart you can see that a bullish reversal is in the making.
Needless to say, current levels must hold, especially 1680 cannot and should not be violated for a good outcome. The reversal, at this point in time, is really promising.
And the most interesting finding is that this does not match the perception and feeling of investors. They have a bad feeling with gold and silver currently;
It’s not justified, says the chart.
It might take more time for a good gold bull run, and we cannot reasonably expect any fireworks until 2000 USD/oz is cleared. We also cannot reasonably expect any acceleration between now and then.
But this chart looks really promising going into 2022, and we believe we see early signs on the chart that confirm our bullish gold stance for 2022 and beyond.
And then you zoom out, to the longest timeframe. You ask yourself: what an amazingly bullish chart. Admittedly, this is a very long term timeframe, and a few quarters (even an entire year) represent a few tiny candles on this chart. But what a bullish long term setup, what is one year for such a long term bullish setup, right?
In our Trade Alerts service we are preparing a silver trade. In our Momentum Investing service we closely track gold and silver to find the appropriate time to re-enter either a gold and/or silver mining position.