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Gold Hits New All-time High (Priced in Yen)

February 18, 2022

What do we know for sure about new all-time highs?

We know they aren't characteristics of downtrends.

New highs are something we regularly see in uptrends.

And wouldn't you know it, Gold Futures just made new all-time highs, priced in Japanese Yen.

"But I live in America, JC. Why should I care about gold in yen terms?"

Because Gold acts much more like a currency than a commodity. Haven't you noticed how practically every commodity on earth has skyrocketed the past 18 months, except Gold?

Besides, the new all-time highs in Gold priced in Yen also came along with new 52-week highs in Gold priced in both Euro and Australian Dollar.

Click on Chart to Zoom In

From a pure long gold standpoint (priced in USD), using something like futures or an ETF, I think a bullish argument can be made if we're above the 2011 highs. Let's call it 1920. Below that and gold is still messy.

To be honest, gold is still pretty messy even above 1920. So just keep that in mind.

As far as the individual stocks go, there are 2 names that continue to stand out to me.

The first is perennial leader Franco-Nevada, which is a Gold focused royalty company:

$FNV is not quite out of this base, but how many gold stock do you know pushing up against all-time highs?

We're looking for a breakout through 160 to get long for the next leg higher.

Now look at the base in this mid-cap gold producer: B2Gold:

Like Gold itself, I think a long position only makes sense if it's above the 2011 highs.

Below that and it's messy.

That's what I see in the precious metals space.

You know I don't take new all-time highs lightly.

It's a big deal and a development we're monitoring very closely.

Any other gold charts out there worth a look?

Shoot it over.

We’ll be discussing all of this and what we’re doing about the current market environment on Tuesday night’s Live Conference Call.

Premium Members can register here.

We get going LIVE Tuesday night Feb 22nd @ 6PM ET.

See you then!

JC

 

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