Will Gold Prices Finally Pull Back or Continue Marching Ahead?

Gold prices are up more than 11% since bottoming last December. Their gains last week took the gold market right up to its 50-week moving average. In 2015, attempted rallies reversed at the 50-week moving average. Could this level once again serve as a barrier to further price advances?

Learn How to Exploit the Gold Frenzy!

Either way, long-term gold bulls shouldn’t sweat this particular technical level. Major bull markets need to pull back and reconsolidate periodically.

Whether that starts happening this week, or later on at higher price levels, a downturn of some magnitude is inevitable.

One indicator that may be pointing toward a pullback sooner rather than later is the negative divergence in gold mining stocks which are often leading indicators for the yellow metal.

Despite gold spot prices rallying along with the broader U.S. equity market last week, the HUI Gold BUGS (Basket of Unhedged Gold Stocks) Index fell by 3.8%. That suggests that some big institutional speculators are turning bearish on gold near term.

If you’re looking to accumulate bullion, a pullback should be welcomed as an opportunity to get in at lower levels. Long-term bulls will not want to see anything as severe as the drawdown that occurred in the second half of 2016, however. They will be looking for any coming correction to bottom out above the $1,125/oz low hit in December.

Higher highs and higher lows characterize a major bull market. The December 2016 low was a higher low than the one from 2015. A higher high will occur when gold prices can move above $1,375. At that point, the public might start taking notice of precious metals markets – which so far this year have been overshadowed by the series of record highs in the U.S. stock market.

President Donald Trump has taken credit for the rally in stocks. His vows to cut taxes and regulations have, no doubt, driven buying by investors.

Over the weekend, Trump sent out this tweet: “Great optimism for future of U.S. business, AND JOBS, with the DOW having an 11th straight record close. Big tax & regulation cuts coming!”

Trump also wants a weaker dollar to help boost U.S. manufacturing. That could put him in conflict with the Janet Yellen Fed if it moves to raise interest rates.

Trump will have the opportunity to appoint multiple new members to the Federal Reserve Board. It’s one of the reasons why top financial and geopolitical analyst Jim Rickards is so bullish on gold.

“If Trump follows through on the logic of the cheaper dollar, he’s going to appoint doves to the Board. The market’s going to get the signal immediately and the price of gold is going to soar,” Rickards said in a recent Money Metals podcast interview. “We’ve got some very short run headwinds, maybe between now and April, but for certainly the second half, even the last three quarters of the year, I’m extremely bullish on gold.”

There will be some bumps along the way. But those who hang on tight for the ride in gold and silver markets stand to be rewarded.

Stefan Gleason is President of Money Metals Exchange, the national precious metals company named 2015 “Dealer of the Year” in the United States by an independent global ratings group. A graduate of the University of Florida, Gleason is a seasoned business leader, investor, political strategist, and grassroots activist. Gleason has frequently appeared on national television networks such as CNN, FoxNews, and CNBC, and his writings have appeared in hundreds of publications such as the Wall Street Journal, Detroit News, Washington Times, and National Review.

Receive these articles per e-mail

Subscribe for the free weekly newsletter and receive 3 papers about physical precious metals investing



  • I’ve profited 104 thousand dollars last year by working on-line from home a­­n­­d I did that by w­orking part-time f­­o­­r few h each day. I was following an earning opportunity I came across from this website i found online and I am so happy that i made so much money. It’s really beginner-friendly a­n­d I’m so thankful that i discovered this. Here is what i do… http://easyurl.net/523c8

  • I have made 104000 dollars in last 12 months by doing an on-line job from my house a­­n­­d I was able to do it by w­o­r­k­i­n­g in my own time for several h /daily. I was following a business opportunity I was introduced by this company i found online and I am thrilled that i made such great money. It’s so newbie friendly and I’m so thankful that i discovered this. Check out what I do… http://easyurl.net/f2265

  • I have made $104000 in 2016 by working on-line from home a­n­d I manage to do it by w­orking part-time for few hrs a day. I was following work model I was introduced by this web-site i found on-line and I am so excited that i was able to make such great money. It’s beginner-friendly a­n­d I’m just so happy that i discovered it. This is what i do… http://easyurl.net/9ff7f

  • I was paid 104,000 bucks in 2016 by doing an online job and I did it by w­o­r­k­i­n­g part time f­­o­­r 3+ h a day. I followed work model I was introduced by this web-site i found on-line and I am amazed that i made such great money. It’s so newbie-friendly a­n­d I am just so grateful that i learned about it. Check out what I do… http://easyurl.net/9861f

  • I have profited 104000 dollars last year by doing an on-line job a­n­d I did that by wo­rking part-time f­­o­­r 3 or sometimes more h every day. I was following an earning model I was introduced by this company i found on-line and I am so excited that I was able to earn so much money. It’s beginner-friendly a­­n­­d I’m so grateful that I found out about it. This is what i do… http://jump.wtf/CCcHHu1

  • I was paid 104,000 bucks in 2016 by working on-line from my house a­n­d I did that by w­orking in my own time for 3 or sometimes more hours /daily. I followed an earning opportunity I was introduced by this web-site i found on-line and I am amazed that i earned so much extra income. It’s so newbie friendly a­n­d I’m just so blessed that i found this. Here’s what I did… http://budurl.me/4d3y

  • I’ve profited $104000 previous year by doing an on-line job a­n­d I did that by wor­king part time f­o­r several hrs every day. I’m using an earning model I found on-line and I am excited that I was able to earn such great money. It’s very newbie-friendly and I’m just so blessed that i discovered it. This is what i do… http://time28.weebly.com

  • I have made 104,000 bucks last year by freelancing online and I did that by wo­rking part-time for 3+ hrs every day. I’m using work model I stumbled upon online and I am so excited that i earned so much extra income. It’s so beginner friendly a­n­d I’m so grateful that i found it. Here is what i do… http://budget25.weebly.com

  • I’ve earned 104 thousand bucks in 2016 by working online from home and I did that by work­ing in my own time f­­o­­r 3 or sometimes more hrs each day. I followed an earning model I stumbled upon online and I am so amazed that i was able to make so much money. It’s very newbie-friendly and I’m just so grateful that i discovered it. Check out what I do… http://dr.tl/80c766

  • thomas.deluca@mail.ru

    I have earned 104000 dollars in last 12 months by working from my house and I manage to do it by w­o­r­k­i­n­g part time f­­o­­r several hrs daily. I followed a money making opportunity I came across online and I am thrilled that i earned so much extra income. It’s so newbie-friendly and I’m so thankful that I found out about this. Here’s what I did… http://marketing25.weebly.com

  • rpalazzo@mail.ru

    I have profited 104 thousand dollars in last 12 months by freelancing online a­n­d I did that by w­orking part time f­o­r few hours every day. I used a money making model I found online and I am so amazed that I was able to earn so much money. It’s so newbie friendly and I’m so grateful that i discovered this. Here’s what I did… http://gee.su/cuqVp

  • ron.mcneill@mail.ru

    I’ve made 104 thousand dollars in last twelve months by working online from my house and I did it by w­o­r­k­i­n­g part time f­­o­­r 3+ h /daily. I was following a business model I came across online and I am thrilled that i earned such great money. It’s so newbie friendly a­n­d I’m so happy that i learned about it. Here is what i did… http://www.wzurl.me/UhyySA

  • harrison-april

    I was paid $104,000 in last twelve months by working from my house a­­n­­d I did that by work­ing in my own time f­o­r 3+ hrs each day. I followed work model I stumbled upon online and I am so amazed that i was able to make so much money. It’s really beginner-friendly a­­n­­d I am just so grateful that I found out about this. Here is what i do… http://www.wzurl.me/wo_i5g

  • amber.norwood@mail.ru

    I got paid $104000 in last 12 months by working from my house a­n­d I did that by working in my own time f­o­r 3 or sometimes more h daily. I followed a money making opportunity I stumbled upon from this website i found online and I am happy that i was able to make such great money. It’s really user friendly a­n­d I am just so thankful that i found this. Here is what i did… http://www.wzurl.me/tPSR1w

  • I was paid 104000 dollars previous year by doing an internet task and I was able to do it by w­orking in my own time f­o­r several hours every day. I tried work opportunity I stumbled upon on the internet and also I am thrilled that I was capable to make such decent money. It is actually newbie-friendly and therefore I’m so pleased that I discovered out regarding it. Look into what I do… http://ipt.pw/utWCom

  • M­a­n­y p­e­o­ple wish t­o ha­v­e a go­o­d earnings at h­o­me, bu­t t­he­y do­n’t kno­w ho­w t­o exactly d­o th­at o­n th­e Int­ernet. Th­ere ar­e a a number of w­ays t­o ea­rn massive am­ount of mo­ney, b­ut wh­enev­er p­eopl­e t­ry th­at the­y g­et tr­app­ed in a s­cam, So Now I am sh­aring wi­th yo­u a g­enuine an­d gu­arante­ed w­ay f­or fre­e to ea­rn hug­e am­ount of mon­ey a­t ho­me.I am making atleast $10000 on a monthly basis since a year.Its a web-based job and easy to do, Even a little boy or girl can do this job and make money on the internet. If you want a happy and rich life then you need to copy and paste this internet site in browser and then follow instructions to get started right now and earn Thousands Over the internet……….. http://adultadda.net/2Y3