Let’s take a look at gold priced in oil (WTI Crude), the Dow and US dollars:

gold Oil

Above, is gold priced in oil from 1983 to now. Price has moved in a large channel before it broke out at the end of 2014. This is really significant given the importance of oil in the current monetary system (more of this another time).

This breakout in some way signals gold’s intention to play a more dominant role in the future monetary system/s. Price has not retested the breakout area and formed a bullish wedge. It is still stuck in the wedge and has some work to do; however, it will break out and go much higher.

Gold priced in the Dow is probably the most significant pricing of gold:

Gold Dow

After the rally of the first phase of the gold bull market from 1999 to 2011, the Gold/Dow ratio has formed a similar correction to that of the 70s (circa 1975). The price is still stuck in the wedge; however, the pattern appears close to completion.

A breakout from the wedge will result in an explosive rally.

The most popular gold price (US dollar gold price) is currently completing a bottoming process similar to that of 1998 to 2001.

gold dollar

The current bottoming process resembles that of an ascending triangle that pierced its support line.

This has many in panic, thinking gold will go lower than the 2016 bottom (the wall of worry). This is typical of major bottoming patterns, especially gold. Price will get back in the triangle and eventually breakout higher.

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