The Gold Cycle Respects the 15-Year Rule

Published by Stefano Bottaioli | Mar 20, 2019 | Articles 2902

 

Since the 1980s, gold has a cyclicity that develops with a 15 year-old periodicity among the tops: beginning from 1980 (1st top) after 15 years we had the 1995 followed by the top of 2011.

At the same time the dollar made, in a mirror pattern, some movements with a series of 15 year-old alternate low: while gold was on the maximum in 1980 the US dollar made a minimum. Same speech in 1995 with the dollar that reached extremely low levels. In 2011 the dollar made a retest of the low. Opposite situation in the phases of top of the US Dollar: at the 1985 top, at the 2000 top and at the 2015 top, gold touched new lows. The actual phase of accumulation seems therefore to be close to the end with a new bullish leg head. The breakout of the horizontal red line (resistance) would be a first strong signal that gold is ready to start to the upside (meanwhile the US dollar is expected to fall). Indicators suggest that the health status of gold is OK.


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Stefano Bottaioli  Technical Analyst / Investment Consultant

   

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