Gold's bull run

23 Okt

Gold was a touch firmer this morning, building on gains made during yesterday’s session. Gold has made a succession of record highs this year, and it has the potential to hit even more in the months, and possibly, years to come. Bull and bear markets stretch out over long periods of time where gold is concerned. The foothills of last major bull run can be seen in the first few years of this century. While it took a long time to get going, the bull market ran until September 2011 when gold topped out around $1,920. From there it fell for the next four years, sometimes steadily, and sometimes sharply, until it levelled out around $1,050 in December 2015, having lost 45% of its value. From here it began to pick up. Although there were several false starts and sharp sell-offs (for instance, it finally broke above $2,000 in August 2020, but was back at $1,600 by October 2022), it never got back down to $1,000 again. It was from here that the latest leg of the rally began, which accelerated from mid-February this year, taking prices to where they are now. So, gold is either in ‘year nine’ of its rally if counting from December 2015, or ‘year two’ if counting from October 2022. That’s a big difference. Either way there’s room for it to run on for a while. But expect some significant pullbacks along the way.