Gold Now in a Sustained, Structural Bull Market; On Average, History Suggests ~175% Incremental Upside
By GCRU Gold News on Sunday, July 31 2016, 00:37 - Permalink
In that May piece we suggested the metal continued to track favorably vs. our bullish expectations, but in the near-term it faced a major test having rallied nearly +25% off its Dec-15 low, a historical demarcation point whereby cyclical retracement rallies were either snuffed out with a resumption of a secular bear beginning afresh, or, the same moves continued higher, indicative of a new secular bull being underway.
Where do we now stand vs. that +25% demarcation point?
As of month-end today, gold is up over 27% from its Dec-15 lows.
This a major milestone – any time gold has managed a move of at least 25% off a major low, it has continued higher every single time with incremental gains ranging from 21%-412%, with the average totaling 175%.