The Year Ahead – Gold

Long-term trends and behavioral tendencies likely to influence the Gold market in 2017

Gold rallied sharply in 2016, but without triggering a major buy signal.

There should be plenty of opportunity to own gold after a bull market is confirmed. It’s okay to be late to the party.

Dusting off our long-term charts, three indicators are likely to confirm the next secular bull market:

1.  Positive monthly momentum;

2. 12-month highs in all three currencies

3. Relative strength versus equities.

The bullish case remains doubtful

1. Buy gold when Coppock momentum exceeds zero… (Yup)

 

2. Buy gold after multiple observations of 12-month highs in all major currencies… (Nope)

3. Buy gold when equities under-perform gold… (Maybe)

Bonus chart… Bank stocks versus gold

Click on the next article in this series

By | 2017-01-05T12:58:15+00:00 January 5th, 2017|Categories: Market Strategy Report|0 Comments

About the Author:

Mark Ungewitter is a Senior Vice President & Investment Officer at Charter Trust Company. He was formerly Director of Portfolio Management at Investors Bank and Trust in Boston, Massachusetts. He holds an M.S. from Bentley University and a B.S. from Massachusetts College of Liberal Arts. He is a member of the American Association of Professional Technical Analysts.

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