For years, gold’s underperformance against the stock market has masked the strength of the precious metals bull market. However, a major shift is now underway, as capital begins moving out of tech stocks and traditional equities and into gold.
📊 Key Signals Confirming a New Bull Market in Gold:
✅ Gold vs. S&P 500 Breakout – Gold has surged to a 4-year high relative to stocks.
✅ Gold vs. the 60/40 Portfolio – Gold is breaking out of a 10-year-long base, signaling capital rotation.
✅ Historical Patterns Align with the 1960s and 1970s Gold Boom – Gold stocks are behaving similarly to the mid-1960s, which preceded a major bull run.
Gold’s Strength Against Stocks Signals Major Market Shift
📌 The Breakdown in Stocks vs. Gold
🔹 The S&P 500 has lost its 40-month moving average against gold—this is a rare occurrence and historically marks the start of multi-year gold bull markets.
🔹 This mirrors the early 1970s gold rally and the mid-1960s breakout in gold stocks, both of which led to massive gains in precious metals.
📌 Stock Market Capital Outflows Favoring Gold
🔹 Investors are shifting away from tech-heavy stocks (Mag7) and conventional equities, boosting demand for gold.
🔹 This marks a major transition in market cycles, where gold begins to outperform stocks over a long-term horizon.
🔹 The last time we saw a breakdown in stock market performance relative to gold, gold surged by over 500% in the following years.
Gold vs. the 60/40 Portfolio: The Ultimate Confirmation
📊 Why the 60/40 Portfolio Matters
🔹 The 60/40 portfolio (60% stocks, 40% bonds) is a key benchmark for institutional investors.
🔹 When gold breaks out against this traditional investment strategy, it signals a major rotation of capital into precious metals.
📌 The 10-Year Breakout is Happening Now
🔹 Gold is currently breaking out of a decade-long base relative to the 60/40 portfolio.
🔹 This confirms that institutional money is moving into gold, marking the start of a long-term uptrend.
🔹 Historically, whenever gold breaks out against the 60/40 portfolio, gold enters a powerful multi-year bull market.
What This Means for Gold Investors
🔹 Gold is confirming a new secular bull market that will likely last for years.
🔹 The breakout against stocks and bonds signals major institutional money is flowing into gold.
🔹 Long-term price targets suggest gold could reach unprecedented levels, with $4,000+ an ounce being a realistic possibility in the coming years.
📌 What to Watch Next:
1️⃣ Weekly & Monthly Confirmation – Gold’s breakout against stocks and bonds needs to be confirmed in weekly and monthly closes.
2️⃣ Gold Miners (GDX) Reaction – Historically, gold mining stocks rally before major gold price moves, indicating potential gains.
3️⃣ Institutional Investment Flows – As gold gains institutional backing, prices could accelerate rapidly.
🚀 Bottom Line: The charts do not lie—gold is entering a powerful new bull market, and those positioned early stand to benefit the most.
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