James Rickards via Daily Reckoning
But the most important development this week may be the one you never heard about on the news or the internet.
On May 10, gold launched a decisive turnaround from its most recent decline.
This kept intact the pattern I’ve been writing about for weeks of “higher highs, and higher lows” as every retreat finds a footing higher than the one before and each new high reaches new, higher ground.
Gold in USD (5 Years)
This pattern began on Dec. 15, 2016, at an interim low of $1,128/oz. Since then gold has hit new highs of:
- $1,216/oz on Jan. 17
- $1,256/oz on Feb. 24
- $1,289/oz on April 18.
Each time gold retreated from those highs, it found a new bottom at a higher price than the time before. The recent low was $1,218/oz on May 10. In this new spike, gold has now rallied to $1,251 as of early Friday.
If this pattern holds, the next stop is $1,300 or higher.
A Fed rate hike on June 14 could be a catalyst for a move even higher, just as the last two rate hikes on Dec. 14, 2016, and March 15, 2017, were turning points for gold.
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