SAMT Blog
The fifth gold window
13. July 2019, by Mario V. Guffanti
Technical Analysis
If we look at a graph of gold in dollars since 2000, we can see that, after a major bull market culminated in 2011 with a high close to the level of 2000 dollars per ounce, we had a strong descent to almost reach the level of 1000 dollars. In the last five years, prices have always moved below the level of $1400, touching it several times. In recent weeks the price level has finally managed to exceed it (1), and the long-term oscillator has overcome the maximum reached in 2018 while maintaining a good positive inclination (2).
This situation is beginning to make gold more attractive as an asset to be included in a portfolio for good diversification. In the past, the performance of gold has always been compared with the American S&P500 index. In fact, if we look at a chart since August 1971, when American President Nixon abolished the convertibility between the dollar and gold, we can see that there were four time windows in which gold and S&P500 alternated very strongly in terms of performance. You can also see that the correlation is not always perfect, as often happ...
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