How to tell if gold's bull market is threatened

With gold in a bull market since 2001, the trick is to stay invested for as long as possible and not be fooled by short term noise. But how do you do this?

Gold has been in a bull market since 2001, which was about when the UK Prime Minister, then Chancellor, sold huge amounts of our gold reserves at around $275/oz an investment error of such magnitude that it has since been named "Brown's Bottom". The market's action since has ceaselessly smacked it, an experience sadly for him, that seems to have no end, now that he's such an unpopular Prime Minister.

As long term investors, our best friend is the 5-year weekly chart. For the ongoing monitoring of both bull and bear markets the 30-week moving average. The 30-week moving average is a price that's calculated daily, it is the average of the previous 30-week's prices. The 30-week moving average supports the price in bull market conditions and suppresses the price in bear market conditions. As time moves on, the 30-week moving average becomes ever more important. A long term bull market remains secure if the price remains above the 30-week moving average.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.