From the Desk of Ian Culley @IanCulley
Precious Metals are back on track, with Gold leading the way.
Gold bugs closed out last week with another strong showing, absorbing overhead supply at a critical level – the former 2011 highs.
With momentum on their side, let’s see how precious metal bulls are faring in other areas of the world.
When we look at Gold valued in other major currencies, it’s already reaching new all-time highs!
Check out Gold priced in euro:
It reclaimed the 2011 highs during the covid sell-off, much like Gold priced in USD. The main difference: Gold has remained more resilient, valued in euro, finishing last Friday at a new all-time weekly closing high.
It’s a similar picture priced in British pounds:
A big base breakout in early 2020, followed by retests in the spring and summer of 2021, has led to new all-time highs.
The next secular bull run in Gold is well underway in Europe.
But what about the Japanese yen?
You guessed it – gold is also printing fresh all-time highs priced in yen…
No surprise! But you get the point.
It’s the same story no matter where we look.
Here’s a quad pane chart of gold priced in key commodity currencies – the Norwegian Krone, Aussie, Kiwi, and Canadian dollars:
The Canadian dollar is the odd duck as it’s the only currency pictured that’s not printing all-time highs. But it’s close.
Nevertheless, Gold priced in almost every major global currency trades above its prior cycle highs from 2011 – even the US dollar. We think it’s just a matter of when, not if, gold breaks to new all-time highs in the US!
Regardless, it’s time to start buying precious metal-related equities now.
The Osisko Gold Royalties Ltd. $OR chart displays the type of precious metals stocks you want to buy:
Notice the mild pullback during the recent bout of weakness across the space. That speaks to relative strength. As does OR challenging new all-time highs as it breaks above our risk level of 14.50.
As long as it’s above there, we like it long toward 20.50.
It’s straightforward. We witnessed significant follow-through across the precious metals space last week.
Gold is breaking out to new all-time highs around the world. Silver is trading back in the box, implying increased risk appetite. And Gold priced in USD closed above its former 2011 highs (a significant level of overhead supply).
Based on mounting evidence, it’s time to get long precious metals and their related stocks as the next secular bull market in Gold takes shape.
Stay tuned.
Thanks for reading! As always, please let us know what you think.
Click here to watch this week’s Gold Rush Video:
And be sure to download this week’s Precious Metals Report below!
Allstarcharts Team
