Gold is Where Stock Market was in Early 1980s

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Gold is Where Stock Market was in Early 1980s

Although Gold has pulled back and its latest breakout attempt failed, it remains fairly close to the most significant Gold breakout in 50 years and the most significant macro breakout since the S&P 500 broke out in 2013.

Gold, like the stock market then, is at the end of its second secular bear market of the past 40+ years. The first secular bear for each was a Depression. Gold's price action during the last nearly eight years is similar to the S&P 500's from 1974 to 1982. Each market trended higher during this period, and the S&P 500 would not begin a secular bull until it cleared all-time high resistance significantly and outperformed in real terms. That sounds like Gold at present.

 

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