Profit Confidential Announces Two Key Factors Point to Gold Hitting Record Levels in 2016

Profit ConfidentialNew York, NY, April 26, 2016 – Profit Confidential (www.ProfitConfidential.com) an e-letter of Lombardi Publishing Corporation, a 30-year-old consumer publisher that has served over one million customers in 141 countries, is announcing that two key factors suggest gold prices will hit record levels in 2016.

“After finishing its best quarter in 30 years, gold remains bullish, up almost 18% in 2016. The S&P 500, on the other hand, is up just 2.5%,” says economist and lead contributor Michael Lombardi. “However, there are a lot of investors that remain bearish on gold and those that are need to understand that two key factors point to gold hitting record levels in 2016.”

Lombardi explains that in 2015, analysts said gold prices were falling ahead of an expected rate hike by the Federal Reserve; historically, gold prices tend to rise when interest rates fall and fall when interest rates rise. On December 16, 2015, the Federal Reserve raised rates for the first time in nearly a decade, but instead of gold prices falling, they rallied. The Federal Reserve is expected to raise rates twice more this year, and if it does, there is an excellent chance gold prices will rally. (Source: “Federal Reserve issues FOMC statement,” Federal Reserve System web site, December 16, 2015; https://www.federalreserve.gov/newsevents/press/monetary/20151216a.htm.)

Second, over the last few years, the 200-day moving average of gold prices has acted as a strong resistance level. As soon as gold hit this moving average, gold prices would move lower, but that changed in 2016, with gold prices currently sitting around nine percent above the 200-day moving average. Further, gold prices have been above this average for 53 consecutive days, representing the longest streak since early 2013.

“There are two takeaway points here. First, gold prices moving above their 200-day moving average suggests the long-term trend has turned in favor of the bulls. Second, gold prices remaining above their 200-day moving average suggests bullish sentiment is increasing and buying activity is strong. This is a far cry from predictions late last year that gold would fall to $850 an ounce in 2016,” Lombardi concludes. “The fact is, gold has been rallying since the start of 2016 and gold mining companies continue to offer investors tremendous long-term opportunities for growth.”

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Founded in 1986, Lombardi Publishing Corporation, which has served over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more information on Lombardi Publishing Corporation, visit www.LombardiPublishing.com.