Paper assets are struggling this year.
Both the S&P 500 and 10-year Treasurys are down around 3%.
Meanwhile, gold prices are on the move.
Shares of the SPDR Gold Trust (NYSE: GLD) are up nearly 4% in 2018. And I’m forecasting another 7%-plus gain over the next two months.
The once-loved precious metal was left for dead for the past several years. But a recent rally is bringing it back to life.
If you missed out on that move, here’s your second chance to make good gains in gold…
Gold rallied from $117.50 to $129.50 between mid-December and the end of January – a roughly 10% gain in just six weeks.
That “too-far-too-fast” move was naturally followed by a pullback, forming a chart patternrn called a “bull flag,” highlighted by two blue lines above.
Bull-flag patternrns typically resolve with a bullish breakout. And when they do, you typically see a “second-chance” rally of equal or greater magnitude as the rally that preceded them.
In this case, GLD rallied $12 before forming the bull flag (from $117.50 to $128.50).
GLD made a bullish breakout last week, when fears of Trump’s global trade war prompted it to leap higher and clear the top of the bull flag, at $126 a share.
Projecting another $12 run, from $126, gives us a near-term target for gold of $138. That’s a potential gain of 7%-plus, which could take just a month or two to capture.
If you’re finding yourself even a little worried – about stocks, inflation, or geopolitical unrest – now’s a great time to add a gold hedge to your portfolio.
You stand to gain 7% or more as we head into summer.
I have my Cycle 9 Alert subscribers in a bullish gold play. They’re already up 20%. And if we hit our $138 target by June, we stand to make gains of up to 200%.
Editor, Cycle 9 Alert
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