The Trader Harbor
  • Business
  • Politics
  • World News
  • Stocks
  • Business
  • Politics
  • World News
  • Stocks

The Trader Harbor

Stocks

Decisive Long-Term Breakout for Gold

by admin March 16, 2024
March 16, 2024
Decisive Long-Term Breakout for Gold

This month, the SPDR Gold Shares (GLD) broke out to new, all-time highs. That was a significant long-term move, which we will discuss when we get to the monthly chart.

Of more immediate interest is the fact that sentiment is still bearish, which bodes well for a continued advance. We gauge sentiment based upon whether closed-end fund Sprott Physical Gold Trust (PHYS) is selling at a premium (bullish sentiment) or discount (bearish sentiment). Currently, PHYS is selling at a discount to NAV.

The weekly chart gives a better perspective of the significance of the breakout, which was decisive. The overhead resistance has held GLD back for more than three years, and has now become support.

But the monthly chart shows that it has been a much longer wait than three years. Gold made all-time highs back in 2011, following which it declined nearly fifty percent. It finally recovered to new, all-time highs in 2020, but it has been stalled until this month. Practically speaking, gold investors have been waiting about 13 years for this encouraging move. The positive side is that gold has established a solid high-level base at around 2,000 to provide future support. Also note how bullish sentiment got (a premium of about +14%) during the parabolic advance on the left side of the chart.

Investing in gold presents some difficulties that must be considered. (Disclaimer: This is information, not a recommendation.) If you buy physical gold, you have to have a safe place to store it. A safe deposit box can be accessed/frozen by the government, and an adequate safe is expensive, difficult to move, and entails some vulnerability. Some ETFs, like GLD, do not actually own physical gold. An alternative is iShares Gold Trust (IAU), which is a closed-end fund that owns physical gold. Sprott Physical Gold Trust (PHYS) is similar to IAU, but it is a foreign entity based in Canada. Consider the implications of all options available.

Conclusion: Gold’s recent breakout was a long time coming and appears to have positive long-term implications. Also, the long period of consolidation has created an impressive base of long-term support.


Learn more about DecisionPoint.com:


Watch the latest episode of the DecisionPointTrading Room on DP’s YouTube channel here!


Try us out for two weeks with a trial subscription!

Use coupon code: DPTRIAL2 at checkout!


Technical Analysis is a windsock, not a crystal ball. — Carl Swenlin


(c) Copyright 2024 DecisionPoint.com


Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

DecisionPoint is not a registered investment advisor. Investment and trading decisions are solely your responsibility. DecisionPoint newsletters, blogs or website materials should NOT be interpreted as a recommendation or solicitation to buy or sell any security or to take any specific action.


Helpful DecisionPoint Links:

Trend Models

Price Momentum Oscillator (PMO)

On Balance Volume

Swenlin Trading Oscillators (STO-B and STO-V)

ITBM and ITVM

SCTR Ranking

Bear Market Rules


0
FacebookTwitterGoogle +Pinterest
previous post
Stop Trading In The WRONG DIRECTION With This Simple Rule
next post
Home buyers to be spared automatic broker commissions under new settlement

Related Posts

S&P 500 Sinks on Software and Semiconductor SELLOFF

June 3, 2024

Is the S&P 500 Flashing a Bearish Divergence?

June 11, 2025

My Downside Target for the S&P 500

March 8, 2025

3 Compelling Charts in the Financial Sector

March 1, 2025

Week Ahead: NIFTY Stays In A Defined Range;...

June 1, 2025

Market Research and Analysis – Part 5: Drawdown...

April 12, 2024

Hedge Market Volatility with These Dividend Aristocrats &...

June 4, 2025

Top 5 Stocks in “Go” Trends | Fri...

August 10, 2024

Cybersecurity Makes Yet Another Statement

February 1, 2025

Breakouts, Momentum & Moving Averages: 10 Must-See Stock...

June 1, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • Jerome Powell asks inspector general to review Fed’s $2.5B renovation project

      July 15, 2025
    • What Happens Next for the S&P 500? Pick Your Path!

      July 15, 2025
    • The Best Five Sectors, #27

      July 15, 2025
    • Bitcoin Just Smashed $112K—Is a Surge to 124K Next?

      July 15, 2025
    • From Hammer to Harami: Using StockCharts to Crack the Candlestick Code

      July 15, 2025
    • Biden chief of staff reportedly gave approval for autopen pardons on final day in office

      July 15, 2025

    Categories

    • Business (1,294)
    • Politics (3,991)
    • Stocks (1,519)
    • Uncategorized (45)
    • World News (1,287)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: TheTraderHarbor, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 thetraderharbor.com | All Rights Reserved