Is 2020 The Year Gold Finally Breaks Out? Some Analysts Think So…

My work on gold bullion has been bullish since last August, when it was $1,295 an ounce. On Dec. 4, 2019, I wrote that I expected to see further strong gains in 2020. Year to date, gold is up 11%, at $1,734 an ounce—one of the few assets to have advanced over that period. In February, bullion broke out to the upside versus the stock-market indexes.

But now the more bullish story is in the gold-mining stocks rather than bullion. From now until year end, my work projects that the gold miners will outperform the S&P 500 index by a considerable margin.

First, let’s examine the price action of the NYSE Arca Gold Miners index. The monthly closing chart shows a decisive breakout from a four-year base last month when it hurdled 965. Before last month’s breakout, a trendline dating back to 2009 had been a formidable barrier. Having overcome resistance with ease, my work generated upside projections to 1300-1400.

Second and more exciting, the Gold Miners index is poised to outperform the S&P 500 by 25% to 40% by year-end. The second chart shows that the Gold Miners broke out of a three-year rounding base. Having gained the support of its various moving averages, the underlying base provides powerful support for the advance.

To learn more, enter your email address provided on this page.

Have a great day!