Since September 2011 gold has been consolidating in a traditional bear market correction. However, this Gold Bear is already too long in the tooth when compared to all Bear Markets since 1972. In the period 1972-2006 there have been 13 Gold Bear Markets. The average Bear Market saw gold losing -33% of its value over an average period of 538 days. Compare this to the current Bear Market where the gold price has fallen -38% in approximately 660 days. Ergo, one may reasonably conclude the present Gold Bear is indeed very long in the tooth – and most probably ended with the creation of the bullish Double Bottom at about $1190. Please see supporting analysis “Gold To Rise Like The Proverbial Phoenix In 2014-2015”
Weekly Technical Analysis strongly suggests a new Gold Bull has been born. Recently gold has effected a 16-month upside Break-Out. Moreover, the shiny yellow has forged a bullish Double Bottom at about $1190. Furthermore, technical indicators MACD, RSI and CCI have put in solid bottoms and are bullishly rising in concert.
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