Gold And Silver Bull Run Is Here – Commodity Piece

Are We Entering A Commodity Bull Cycle?

Gold has been on an absolute tear since breaking the neckline of the inverse head and shoulders pattern. With no retest of the neckline yet, Gold seems to have plans to simply continue higher. This strength is atypical of periods when max pain for Gold is higher, which seems to be the case right now. At this rate, the $2672 inverse head and shoulders target is just a matter of time.

The 50-month simple moving average (SMA) is key for a Gold bull run, as seen during the previous run-up in 2000s. Currently, not only is Gold above this SMA, but the SMA has a bullish posturing (curling up), along with bullish momentum and room for the RSI to continue running up. These factors all point towards upside continuation is the coming months/years. Another important factor to note is that volatility is beginning to rise from low levels, which suggests that not only is Gold going to continue higher, but also that the moves higher are likely to get bigger.

Intermarket Analysis

Gold’s incredible strength has caused a divergence from the inverted 10-year Treasury yield (blue line). These 2 have shown to have a strong correlation until recently. It’s very likely that Gold has been signaling and front-running lower 10-year Treasury yields, which makes sense as the Fed plans to potentially cut rates in 2024. However, it’s important to note that the last time such a divergence occurred was a couple of years before the 2008 Financial Crisis. This could suggest that an economic contraction/event in the next couple of years isn’t out of the question.  

While Gold has already run-up to new highs, Silver has just started its race engine. That’s exactly what we’re going to cover in the next section for our paid members. We’re also going to take a look at the Silver-to-Gold ratio, Gold Miners and Silver Miners to help our members maximize their profits by part-taking in high probability setups.

We just released our Q2 2024 Cycles Forecast for multiple different asset classes and equity names. This also includes Gold, Silver and other key Commodities. The introductory article for the quarterly Cycles Forecast can be found here. Please note that our Founding Members have now been emailed these Cycles Forecasts (the full deck covering every name!). If you would like your copy earlier for the next quarter, please consider upgrading to a Founding Member status on our Substack.