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February 7, 2019 | 3 Gold Charts More Bullish Than a Street Festival in Pamplona

Sean Brodrick

Sean is the natural resource analyst for Weiss Group. You can read his thoughts on gold, oil, cannabis, uranium and other natural resources at EdelsonInstitute.com

I have three powerful gold charts for you. If you aren’t bullish now, you should be by the time you finish reading this short article.

Because gold is looking more bullish than a street festival in Pamplona, Spain.

Chart #1
Gold is Forming a “Bull Flag”

What’s that? The pole of a “bull flag” is formed by a vertical rise in a stock or commodity (in this case, gold). After that initial surge higher, gold is now consolidating, drifting lower like a flag on a pole.

The saying goes, “Flags fly at half-mast.” And this would give us a short-term target of around $1,352 an ounce, once gold breaks out higher from this bull flag.

You can see how volume falls during the consolidation in the flag. That’s normal. Sooner rather than later, if this pattern proves true, we’ll see gold surge higher for the second half of its move.

Mind you, I am convinced $1,352 is just a signpost on the road to even higher prices.

As for the shorter-term pullback, well, nothing goes in a straight line. And gold-hungry Chinese are all on vacation this week to celebrate the Lunar New Year, The Year of the Pig!

Happy New Year! But while Beijing is away to play, I know what I want to buy on a pullback.

Chart #2
Exchange-Traded Gold Funds Load Up

You know who else is buying? ETFs that hold physical gold. I’ve got a handy chart of that, too!

The top part of this chart shows that, since the low in September, ETFs that hold physical metal have added 188 metric tons of gold. That’s 6,044,340 troy ounces. Wow!

On the bottom of the chart, you can see the price of gold. It’s moving right along with the ETF buying. Do you think those two are related? Yeah! Make that, “Hell, yeah!”

Chart #3
The Fear Trade Drives Money into Gold

What’s driving this? Well, here’s another chart, from the World Gold Council, showing the breakdown of WHERE the ETFs doing most of the buying are located. It might shed some light …

You can see that it’s the North American gold ETFs that are scooping gold up by the bucket-load. I strongly believe this is the Fear Trade in action. It’s got investors worried and worked up over how the Political Civil War in Washington will play out, and how it will affect investments generally and Wall Street specifically.

I’ve told you about the political civil war. Republicans and Democrats in D.C. hate each other so much, they’d rather see the country fail than each other succeed. That’s scary for ordinary folks. But it’s bullish for gold.

So how might you play this for maximum profits? Click here for my special report and find out.

The bull flag is waving. You can virtually hear the hoof beats coming down the street.

All the best,

Sean

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February 7th, 2019

Posted In: The Edelson Institute

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