Gold has finally shot through the critical barrier of $1,370 to come within reach of $1,400. This seems to mark an end to a bottoming process in the gold price that has lasted almost 6 years. It is remarkable that gold has now broken out in dollars. Gold had already broken out in almost all other currencies. This too is a sign that we are at the start of a new upward trend.
What we want to see in the coming days is for the gold price to remain above $1,340. This would confirm that the road to the $1,500- $1,600 barrier is open. We expect that all dips will be bought aggressively from now on.
Well-known technical analyst Peter Brandt confirms that gold is completing a multi-year head and shoulders pattern, and he has a target price of $1,899 for the metal, close to the old high of 2011. After that, his next target for the coming years is $2,637. Another famous analyst, Avi Gilburt, who correctly predicted both the 2011 peak and the bottom in 2016, wrote last week that should gold break through $1,370 in the coming days, he anticipates a fast and strong rally based on the Elliot wave principle.
This movement is a signal for our fund to review the portfolio and to add more precious metal producers. Gold producers struggling at a gold price of around $1,300 are a lot more profitable at a price of around $1,400.
The gold/silver ratio has now risen to over 90 for the first time in 30 years, which means that silver is more than 90 times cheaper than gold. Now that gold is rising, silver will move with it and will probably accelerate even more. We are going to raise the silver percentage in our portfolio, from 6% to 10%.