Barrick Gold (YELLOW) has recovered over the past four weeks and some recent weakness in the US dollar is making people think of a more sustainable up move for GOLD and precious metals in general. Also some Real money Subscribers asked about precious metals recently.
Let’s check out some charts and indicators.
In the daily bar chart of GOLD, below, we can see that the price has bottomed out since June. Drop to about 14 dollars was bought.
GOLD has recovered and the slope of the 50-day moving average has turned positive. The On-Balance-Volume (OBV) line has been moving higher since early September and tells me that GOLD buyers are now more active than sellers. The Moving Average Convergence Divergence (MACD) Oscillator has shown an improvement since late July and is now finally above the zero line in the buy zone.
In the weekly Japanese candlestick chart of GOLD, below, we can see that the price has been in a downtrend for about two years. The price is below the descending 40-week moving average. The weekly OBV has shown some improvement over the past two months and the MACD has crossed above, providing a short buy signal.
In this long term only close or line chart of gold price. below, going back to 1973. If you start with the 1976 low, you can see a cyclical low about every eight years. The next eight-year low is predicted around 2024, but could affect 2023.
In the long-term chart of GOLD below, we can see the impact of an 8-year cycle on this stock.
Final strategy: Gold shares could rally around $21 if the dollar continues to weaken, but we could see a better buying opportunity as early as 2023. 2024 could usher in a bull run in many years.
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