Lars Lingren has published a very interesting set of charts which compare the gold price break out in the last gold bull market to the one taking place right now.
Lingren has shown how the gold charts in January 2006 look the same as the gold charts looked in August 1979, just before the gold price increased from $320 to $870.
The Gold Price Breakout in 1979
From 1976 to 1979 the price of gold rose within a well defined trend channel until August 1979, when gold broke above the trend channel twice hitting the $320 level. Soon after the double break out, the gold price rose to $870 US in a period of just 5 months.
From 2001 to 2006 gold has again risen within a well defined trend channel, until NOW!
Lingren points out that we are seeing the same double break of a well defined trend channel as we had in August 1979.
On December 12th, 2005 the gold price broke out of the current trend channel and it has just done it again, only this time the price of gold has broken considerably higher.
Compare the gold price charts of 1976 to 1979 and 2001 to 2006.
Get ready for the gold price to rocket to at least $850 in 2006.
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