It was a great week for gold investors. As per our gold price forecast the gold market is in a new uptrend. Especially last week we saw bearish energy pick up across the board … except in the gold market. Silver looks to be a bit of a laggard, but it looks ready to catch up as well as it trades very close to a breakout level (also in line with our silver forecast). February 2020 is set to become a challenging month, there will be volatility for sure, that’s what our leading indicators tell us. But there is this one gold chart that gold investors have to pay attention to, and it’s featured in this article.
The one gold chart that is crucial for gold investors in February of 2020 is the one outlined below. It is the GDXJ ETF.
What is clear on this chart is the rounding formation, also a consolidation, after the breath taking rally of June/July/August 2019.
If *intuitively* a consolidation of 5 months makes sense, it certainly is *factually* confirmed by its chart.
The rounding formation is a powerful bullish setup, both after a long bear market but also in the context of a (new) bull market which is what we see in the gold market.
Others may be “selling rocks” and assess the gold market as a no-go. Our thousands of hours of gold market analysis says that this might become THE most attractive place for investors in February, going into March.
The chart below is an important indicator at this very point in time. We are well aware of the fact we featured other charts in recent weeks that matter to the gold market: Gold To Interest Rates Ratio Confirms Epic Trend Change In Gold Market, Watch These 2 Charts For The Continuation Of The Gold Bull Market, and Gold’s 2020 Bull Market On Gold’s Chart Is Pretty Solid.
All these data points are still relevant. All we are saying is that below chart is the most important one, on top of the other data points, as a final confirmation for gold’s investing opportunity in February and March.
Note that we published an even more important gold chart this morning but in the restricted area of our site. It is a chart that will not appear in the public domain, the type of chart an analyst is proud of because hardly anyone else on the world sees the same.
