Gold’s Bullish Pattern Is Expected to Continue

Maybe you believe in technical analysis, or maybe you don’t. Either way, you can’t deny what your eyes are telling you as gold plays out a pattern that’s been in effect since 2010.

The skeptics will say that chart patterns are nothing but voodoo or hocus-pocus. I’d counter by saying that a chart is really just a visual representation of a set of price data. It’s much easier to see trends in a chart than in a numerical table of prices.

Besides, investors can always combine fundamental analysis with charts for a more complete picture. Why not use all of the available data at your disposal? It’s more accessible than ever now, with both the news and the charts right there on your smartphone.

The news surrounding gold really couldn’t be any better than it is in mid-2025. Central banks in China and elsewhere are constantly adding to their gold stockpiles. Meanwhile, retail investors are buying up gold, even to the point that gold bars are selling like hotcakes at Costco.

Courtesy: @Barchart

Speaking of charts, here’s what the relative value of the U.S. dollar looks like on a year-to-date basis. A picture is worth a thousand words, as the old saying goes.

Certainly, the dollar’s decline bodes well for anti-inflationary assets like gold and Bitcoin, both of which have performed well in 2025 so far. Just think about which currency units can be printed and which ones cannot, and adjust your portfolio strategy accordingly.

Since gold is considered a safe-haven asset, uncertainty about geopolitical issues only adds to the bullish argument for gold. If you have any concern at all about the multiple wars going on right now, diversifying your portfolio with gold is just a common-sense thing to do.

Those are news-related considerations, but now we can combine them with what we’re seeing in the price charts. The dollar chart shown above tells a tale about the deteriorating value of government money, while the following gold chart sends a buy signal that any technical trader should appreciate.

Courtesy: @IGWTreport

I must give kudos to Incrementum and In Gold We Trust for this head-turning price chart. The doubters can flap their gums all day long, but this gold chart ought to keep them quiet for a while.

From 2010 to now, there’s a cup-and-handle formation consisting of a big semicircle and a smaller semicircle. This happens in short-term price moves all the time, but it’s not often that you’ll find a clear-cut 15-year cup-and-handle formation.

It’s a massively bullish pattern, and the cup-and-handle suggests that $4,000 gold should arrive soon. If the pattern only happened over a few minutes or even a few days, the skeptics might dismiss it as a random occurrence.

Yet, there’s much more credibility to the pattern if it’s been in effect for a decade and a half. It’s conceivable that gold could stage a huge rally like it did from 2002 to 2010.

Gold took a breather for a while, but that’s only natural after the previous massive bull run. There’s no guarantee that any technical pattern will work out perfectly. Nevertheless, I’m looking forward to substantially higher prices because the current gold rally is long-awaited and likely just getting started.