The Demise Of The Gold And Silver Bull Run Is Greatly Exaggerated

A few analysts are once again beating the drums for much lower gold and silver prices – supposedly just around the corner. They mistake the testing of a recent breakout for a turnaround in the main trend.In the process they are sowing confusion. Here are some charts that show the main trend, along with reasons why the price of gold and silver is on track for a sharp rise, thanks to bullish fundamentals. 

 In view of the fact that we expect mining stocks to lead the way, we will start with the HUI index of gold miners.Price has just finished a test of the January 2017 breakout. The green arrow points to confirmation of the uptrend that began at the blue arrow. This is referred to as an ‘ABC bottom”. The target for this breakout is 365. The supporting indicators are positive with room on the upside. 

 This chart courtesy Goldchartsrus.com shows the long-term trend in the US rate of inflation, along with the short-term trend in red.Both long-term and short-term rates are rising.This trend provides energy for gold and silver to rise.  

Featured is the long-term gold chart in log format.Price has found support at the 150 month moving average.A breakout at the $1300 level will be very bullish and will set up a target at $2100.   

Featured is the US dollar index.Price appears to be carving out a ‘head and shoulders’ pattern.The set-up will be confirmed in the event of a breakdown at the purple arrow.The target for this potential breakdown is at the green arrow.Gold and silver can be expected to benefit in the event.The supporting indicators are negative.  

This chart shows the official US Federal Debt is closing in on 20 trillion dollars.It will never be repaid.It will be inflated away.Gold and silver will rise in price as a result, albeit in inflated currency.