The Gold Bull: “When, Not If”

07/17/2014 9:00 am EST

Focus: COMMODITIES

Mary Anne & Pamela Aden

Co-Editors, The Aden Forecast

No sooner had gold taken a back seat to the soaring stock market, when it did an about face, observes metals and resource experts Mary Anne and Pamela Aden, editors of The Aden Forecast.

Gold jumped up from its June 2 low. Tensions in the Middle East and Ukraine pushed gold up. The Fed then fueled the rise by, again, affirming a low interest rate policy, while the dollar declined.

A run to gold as a safe haven is indeed underway. Gold reached a recent 18 week high. Short stop losses were triggered and the surprise, revised US first quarter GDP added to the bubbling gold rise.

In the end, the yellow metal posted a second quarterly advance, making it the first back to back quarter gain since 2011.

Gold is looking better with each passing month. Investors are starting to take note. It’s being reflected in the big surge in gold ETF buying, also at the fastest pace since 2011.

We’ve felt that 2014 could end up being the turnaround year, from a bear market to a bull market, and that a bull market ascent could develop in 2015. This is still a likely scenario.

We believe it’s just a matter of time until the next bull market gets underway…not if a bull market develops. There are too many positives behind the gold price.

Gold’s next hurdle is the $1380 level. Once surpassed, its key breakout level is at $1420. Keep an eye on $1420.

This is now the 23-month moving average level, as well as the August high. Once this level is overcome, gold could then reach its original support level at $1536.

Our gold shares are doing well. Royal Gold (RGLD) is a royalty company. It’s been a good performer and it’s still cheap. It continues to be one of our favorites.

Agnico Eagle (AEM) is also a favorite. And if you want to buy junior miners, we recommend the Market Vectors Junior Gold Miners ETF (GDXJ).

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