The yellow metal is approaching a key turning out, and the resulting turn promises to be upward.

September 16, 2020

Dear Fellow Investor,

While the “powers that be” have proven unable to force gold into a significant price correction, neither has gold shown that it can break out of its ever-narrowing trading range.

But that could be ending — if not now, then very soon.

On Monday I sent out a Gold Newsletter Alert featuring a chart of gold’s “pennant” formation. Basically, a period of decreasing volatility results in a narrowing price range until a major move out of the formation results.

That move can be to the upside or downside, but is usually in the same direction as the previous trend. For gold, that’s upward.

We’ve used these formations in the past, usually as pointed out by our friend Ron Griess of TheChartStore.com, who has reliably revealed these situations to his subscribers over the years, in a number of commodities and assets.

For example, we were able to use a similar pattern last December to get our readers positioned at the beginning of a very profitable move higher in gold and mining stocks.

To be sure, Ron says the current pennant formation isn’t as “pretty” as the one back in December, and thus he isn’t as confident in it. But as you can see below, it can certainly seem attractive to die-hard gold bugs like us.

I’ve updated the chart from Monday’s Alert above, and it reflects gold prices through yesterday’s close.

As you can see, gold burst through the upper limit of the formation on Monday, prompting my Alert. It continued that move higher yesterday, gaining about $17 and making me look like a genius.

However, “someone” took control and drove the price down in dramatic fashion, well into the red, before the metal fought back to finish the official session a couple of dollars in the green.

All in all, it was a textbook example of how gold’s been trading lately. It’s been resisting any and all attempts to push it into a significant price correction, as strong buying comes in on any dips.

On the other side, it’s also proven unable to rally out of the trading range — at least so far. That said, gold’s up another $13 as I write, adding further encouragement to our bullish thesis.

Even before today’s gains, this chart indicated that the end of gold’s corrective pattern could be near, if not already in the rear-view mirror.

Will the Fed’s post-meeting policy statement today provide the fuel to start a new rally? Or will the market express dissatisfaction that the central bank isn’t doing more to guarantee ever-easier money and higher inflation, and thereby send gold lower?

Anything can happen, frankly. But even if the rally doesn’t emerge now, gold’s ever-narrowing trading range is an indication that it shouldn’t be too far in the future.

We’ll know more this afternoon.

Once again, we need to remember that we’re in the early stages of a multi-year bull market driven by truly unprecedented monetary easing and debt creation.

Every serious investor needs to be involved in the sector, and needs to devote the necessary effort and money to safeguard and build their wealth for the days ahead.

As I noted last week, the two best ways to do so: are

1) Subscribe to Gold Newsletter or our Gold Newsletter Alert now. CLICK HERE to subscribe.

2) Sign up now — right now — for our upcoming New Orleans Investment Conference, being held from October 14-17.

This year’s speaker roster is one of the best ever, featuring Tucker Carlson, Stephen Moore, Doug Casey, Robert Kiyosaki, Danielle DiMartino Booth, Jim Rickards, Rick Rule, Peter Schiff, Grant Williams…

…Peter Boockvar, Tavi Costa, Ross Beaty, The Real Estate Guys (Robert Helms and Russ Gray) and Peak Prosperity (Chris Martenson and Adam Taggart).

And it doesn’t end there — you’ll also hear from:

Mark Skousen, Mary Anne and Pamela Aden, Gary Alexander, Omar Ayales, Brian Bosse, Thom Calandra, Brent Cook, Adrian Day, Gerardo Del Real, Mickey Fulp, Lindsay Hall, Steve Hochberg, Mike Larson, Albert Lu, Bill Murphy, Ned Naylor-Leyland, Chris Powell, Gwen Preston, Dana Samuelson, Ronald-Peter Stoeferle and Lobo Tiggre.

PLUS: Jim Iuorio, Jim Bianco, Jan Nieuwenhuijs, Sean Brodrick, Dave Collum, Dominic Frisby, Lyn Alden and Rich Checkan.

That’s an all-star line-up that transcends anything else you’ll find today. And it will be coming to you from October 14-17, during this year’s exciting virtual version of “the world’s greatest investment event.”

But it won’t stop there. You’re going to get all that value — and much more. Because we’re using our powerful leverage in the investment industry to continue delivering the same kind of investing intelligence to you throughout the year.

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Once again, if you’re a serious investor concerned by the dangers ahead…and excited by the generational profit opportunities…you need to participate in this year’s New Orleans Conference.

You can do so by registering now at this link.

The bottom line is that we don’t know for certain what gold will do in the short term, but we know full well where it’s going over the long term.

We need to be prepared, now, for the big moves to come.

All the best,

Brien Lundin
Editor, Gold Newsletter
CEO, the New Orleans Investment Conference

P.S. LATE-BREAKING POST-FED UPDATE: The Fed, as expected, just confirmed that it’s “not even thinking about thinking about raising rates” with its projections of zeroed interest rates for at least the next four years.

Moreover, it’s made its goal of higher-than-2% inflation official by including it in the post-meeting policy statement. It all adds up to official recognition that real, inflation-adjusted interest rates above zero are not only undesirable, but impossible given the size of the federal debt and its growth trajectory.

This amounts to an extremely favorable backdrop for gold for years to come. The still-muted short-term reaction in gold is more of a buy the rumor, sell the news dynamic. In fact, the Fed could not have presented a more-bullish outlook for gold and investors should keep their focus on the very positive long-term picture for the metals.