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by Marin Katusa, Katusa Research:
Editor’s Note: We’ve recently been publishing these articles in video format on YouTube. If you’re interested, please click here to watch it.
For the first time since November 9th 2011, front month gold futures traded hands above $1,800 per ounce. It’s now knocking on the door of a major technical resistance level.
Naturally, this has every goldbug and self-proclaimed expert on YouTube shouting from the rooftops.
Before we jump into what is going on in the current gold markets, lets first take a look at past gold bull markets…
Below is a chart which shows the previous major bull markets in gold. You will see that all but 1 of the major gold bull markets resulted in gold appreciating at least 400%. Using January 2016 as the low point for the current gold bull market we are in, gold is up 69% from its lows.
History may not repeat itself but it’s critical to understand what is driving the gold price right now.
What is Driving the Gold Market Higher?
Right now, there are several major economic factors driving gold higher.
1) Large Government Stimulus Packages Around the World
This leads to currency devaluation. The global fiscal policy