Gold Prices: These 3 Charts Say Gold Bullion Is About to Skyrocket

Gold PricesGold Price Poised to Soar?

Gold bullion has been one of the best performing assets in 2016. With this, investors are asking where gold prices are headed next.

Saying the very least, if you are bearish on gold prices, you should really think again. Just look at the three charts below. They should convince you to look at gold prices very closely.

First, looking at daily gold prices, we see some very positive developments.

Gold - Spot Price CME

Chart courtesy of

As it stands, gold prices are trending above their 50- and 200-day moving averages (MAs). At the very core, this means that the long-term and short-term trends in gold prices are pointing upward.

Also, it is important to pay attention to the location of these moving averages as well. It’s the first time in a while that we have seen gold prices remain above their 200-day MA and find support around their 50-day MA. This tells us the trends are persistent.

Also, there something else we should pay attention to. You see, in the first two months of the year, gold prices trended higher. In March, they stalled a bit and traded sideways until late April. Just recently, the yellow metal’s prices broke above the range that was in play since early March. In technical terms, this suggests a breakout—meaning higher gold prices could be ahead.

Second, the longer-term chart also reveals something interesting.

Gold - Spot Price (EOD)

Chart courtesy of

Over the past three years, gold prices were in a technical chart pattern called a “falling wedge.” This pattern is essentially a bullish reversal pattern. Now, we see the prices are moving to the upside (above the black line at the top). This is bullish and shouldn’t go unnoticed.

Finally, on a very long-term basis, there are several reasons to be bullish. Look at the chart below of monthly gold prices and pay close attention to the trendline and green arrow at the bottom of the chart.

Gold - Spot Price(EOD) CME

Chart courtesy of

The long-term trend that began in the early 2000s remains in place. With this, you must remember the most basic rule of technical analysis: the trend is your friend until it’s broken. Saying gold prices will decline after looking at this trend would be outright irrational.

Also, the green arrow points at the volume. Since the beginning of 2016, we have seen the volume in the gold spot market spike to its highest level since 2013. With precious metal prices going higher, rising volume suggests there’s excited buying happening—or, one could say, money is coming back to the gold market.

Gold Price Outlook 2016

In these pages, I have harped over and over again that gold prices are really worth a look. I was right.

Despite the solid gains so far in 2016, I remain bullish toward gold prices. I expect many more gains ahead. To me, as I have said before, it will not be shocking if we look back at 2016 gold prices and talk about how low the yellow metal was trading.

Time will obviously tell more, but for now, let me say this: pay close attention to gold bullion and gold-related investments, as they have the potential to double your money and more.