{"id":9799,"date":"2018-05-16T07:30:00","date_gmt":"2018-05-16T11:30:00","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=9799"},"modified":"2018-05-16T07:30:00","modified_gmt":"2018-05-16T11:30:00","slug":"the-longer-term-outlook-for-gold","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/the-longer-term-outlook-for-gold\/","title":{"rendered":"The Longer-Term Outlook for Gold"},"content":{"rendered":"

The stock market wouldn’t be doing its job if it didn’t smack me across the head every once in a while.<\/p>\n

I turned modestly bullish on gold stocks late last week. The sector had consolidated long enough that I thought “well, if gold was going to sell off to the $1,290 target I predicted a few months ago<\/a>, it would have gotten there by now.”<\/p>\n

As soon as I said something nice about the gold sector<\/a>, the market smacked me down. Gold dropped more than $20 per ounce yesterday. The shiny yellow metal is trading hands for just $1,290 per ounce.<\/p>\n

That was my downside target price. It’s the lowest price so far in 2018. And it is a screaming bargain at this level.<\/p>\n

Look at this long-term, weekly chart of the price of gold…<\/p>\n

\"\"<\/p>\n

This chart is forming an ascending triangle pattern – which is a series of higher lows, with rallies that keep bumping into the same resistance level.<\/p>\n

Most of the time, this pattern breaks out to the upside. And if that happens here, then gold could rally up towards the next resistance level at about $1,600.<\/p>\n

Of course, this is a long-term chart. It could take a year or more to play out. But I like the way it looks.<\/p>\n

Notice also that the various moving averages are stacked in a bullish configuration. The 9-week exponential moving average<\/a> is above the 20-week EMA. And, the 20-week EMA is above the 50-week moving average<\/a>. This type of setup supports a longer-term bullish view.<\/p>\n

So, as long as gold doesn’t break decisively below the rising support line of the triangle pattern, traders should look for higher gold prices over time.<\/p>\n

In other words… If you’ve been waiting for a decent pullback in the price of gold in order to add more exposure to the metal, then Tuesday’s drop was a buying opportunity.<\/p>\n

Best regards and good trading,<\/p>\n

<\/p>\n

Jeff Clark<\/p>\n

Reader Mailbag<\/strong><\/h2>\n

Today, two opposing views of yesterday’s essay, “This Indicator Says Sell Today”…<\/a><\/p>\n

\n

Yes, but the numbers this morning were very strong! So why would the market roll over now?<\/p>\n

– Patrick<\/strong><\/p>\n<\/blockquote>\n

\n

I’ve been following you for years, thanks for these updates. I use them in my trading. Got short yesterday and added today. Your viewpoint helps confirm what I see.<\/p>\n

– Bob<\/strong><\/p>\n<\/blockquote>\n

Thank you, as always, for your thoughtful insights. Keep them coming right here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Here’s how we could see $1,500 gold…<\/p>\n","protected":false},"author":34,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[7],"newsletter-type":[],"ticker":[],"class_list":["post-9799","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-jeff-clark"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/9799","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/34"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=9799"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/9799\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=9799"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=9799"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=9799"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=9799"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=9799"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=9799"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=9799"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}