The Next Phase Of Gold's Bull Market Has Just Begun

Following more than two months of stagnation after the U.S. presidential election, gold is now breaking out decisively, signaling its readiness to resume its rally toward $3,000 and beyond. While this recent pause has tested the patience of many investors, I've consistently maintained that it was a healthy consolidation phase, paving the way for even greater gains. Now, as I'll demonstrate with numerous charts, gold is breaking out of its post-election trading range across nearly every major currency, reaffirming its bullish momentum.

In my view, the most important gold chart to monitor is the COMEX gold futures chart, priced in U.S. dollars. Over the past few months, a triangle pattern has taken shape—a formation that is typically a continuation pattern, suggesting the uptrend preceding it is likely to persist. Today, gold broke out of this triangle, an encouraging development. Notably, as I recently explained, a similar triangle formed in late 2007, and its breakout signaled substantial gains in the ensuing months.

To fully confirm that today’s breakout is genuine, I’m looking for a decisive, high-volume close above the key $2,800 resistance level. Breakouts above horizontal resistance levels carry greater validity than those above diagonal ones, making this milestone particularly significant. The $2,800 resistance level holds particular significance as it marked gold's peak in late October before the recent pullback. Additionally, it serves as a key psychological level, reinforcing its importance in the eyes of investors.

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