Why I exited Gold, page-15

FUN WITH CHARTS...

If you follow gold, you're probably familiar with the following long term chart...



The later part of the chart shows a technical uptrend going back 20 years culminating in a rather tidy Cup & Handle pattern...
which would normally have a good probability of continuing up, after re-testing the historical resistance level of the 'left rim'.


However, re-doing the chart for REAL inflation
(see linked article)
https://www.bullionstar.com/blogs/ronan-manly/the-staggering-levels-of-real-inflation-adjusted-gold-and-silver-prices/

gives a rather different look...



This is what is referred to in Technical Analysis as a
big-ass downtrend.

From that perspective, I find the Cup & Handle play rather less compelling...