Gold Can Rally Another 13% After Hitting a New High

By Brett Eversole

Gold broke above $2,000 an ounce in late October. But it didn't stop there...

The metal kept rising throughout November. And it even hit a new all-time high on the first day of December. Now, it's darn close to those levels once again.

Gold has tried (and failed) to hit new highs above $2,000 several times in recent years. Between those failed breakouts and gold's poor performance as an inflation hedge, many investors have given up on it.

That's a mistake.

History shows that gold will likely keep heading higher from here. In fact, the recent breakout points to double-digit upside over the next year.

Let me explain...

---

Recommended Links:

Here's What You Missed Yesterday With uncertainty on our readers' minds, we called everything else off to begin the new year with an extremely time-sensitive warning from the analyst who has posted over a dozen 1,000%-plus winners since 2020. He reveals what to expect in 2024... and exactly what you should be doing with your money to prepare. Click here for details. Billionaires Now FLOODING Into Gold Ray Dalio, John Paulson, and many others all recommend you own gold right now. But did you know there's another huge investor (worth more than all the world's billionaires COMBINED) buying gold by the ton? That's why the best move to make right now could be this little-known gold investment (which you can get started with for just $5). Click here for the No. 1 gold recommendation.

---

Breaking above $2,000 an ounce has proved problematic for gold. The metal has punched through that level three other times in the past four years... But it has never held on to those gains.

This time could be different. That's because sentiment is bearish despite the recent breakout...

Investors just aren't that interested in gold. Shares outstanding of the largest gold exchange-traded fund are well below 2020 levels today. And the Commitment of Traders report for gold shows that futures traders are still bearish on the metal, too.

However, the recent breakout points to more gains ahead. Not only did the metal hit a new all-time high, but it also hit a new 52-week high in the process. Take a look...

Gold prices remain near all-time highs today. And we should view that as an opportunity to act.

You see, the trend is in your favor if you buy after a major breakout. And if there's one thing I love as an investor, it's sticking with the trend.

Again, the recent breakout triggered a new 52-week high. That isn't too common for gold. We've only seen 37 other instances in the past 50 years. But according to history, buying after these rare setups can lead to solid upside. Check it out...

Gold has a long history of impressive returns. They've nearly matched the returns of stocks over the past five decades, leading to annual gains of 7%. But you can do much better by buying after a new 52-week high.

Similar instances led to 5.5% gains in six months and 13.4% gains over the following year. That's nearly double the typical one-year return. And it means gold's recent breakout can continue.

Like I said earlier, sentiment is negative for the metal despite hitting new highs. But that's just another reason to expect the gains to continue.

So if you've forgotten about gold, now is the time to take a closer look. The recent gains are likely only the beginning of this rally.

Good investing,

Brett Eversole