Gold's Wild Rally Isn't Over Yet

After years of going sideways, gold is finally staging a massive breakout... The metal finally broke above $2,000 per ounce – a key level for gold – late last year. And it has been off to the races ever since. [Chaikin PowerFeed]( Editor's note: As you've likely noticed this year, gold has been on a tear. It's up about 14% so far in 2024. That's roughly double the return of the S&P 500 Index over the same time frame. [Earlier this month]( we discussed how the economic situation in China could help gold keep moving higher. And over at our corporate affiliate Stansberry Research, our friend Brett Eversole recently spotted a different setup that could point to more upside for gold... So today in the Chaikin PowerFeed, we'll turn things over to Brett to explain why – with an essay that first appeared in his free DailyWealth e-letter on April 25... Gold's Wild Rally Isn't Over Yet By Brett Eversole, editor, Stansberry Research After years of going sideways, gold is finally staging a massive breakout... The metal finally broke above $2,000 per ounce – a key level for gold – late last year. And it has been off to the races ever since. Gold has soared since early March. It broke above $2,400 an ounce this month. And the rally recently reached a rare setup... The metal just hit major "overbought" levels. Normally, that would be a bad sign. But in this case, it points to double-digit upside over the next year... Recommended Links: ["This Is the Gravest Warning of My 25-Year Career"]( Hedge funds, Swiss banks, private wealth managers, billionaires, CEOs, even high-ranking politicians all rely on Porter Stansberry's financial insights. Today, he's stepping forward to give you the same dire warning he has privately shared with them. To get all the details of the shocking economic event Porter is sounding the alarm on today, [go here now before it's too late](. [Your 2024 Election Money Blueprint]( Voters are angrier than ever, and it's likely to keep getting worse. The media and Wall Street keep declaring how great the economy supposedly is... but no one – besides the ultra-rich – seems to feel that way. Protect yourself with this one simple move today. [Find out for free here](. Overbought setups tend to be a major warning. They signal that an asset has soared too high, too fast. It's like a stretched rubber band that's bound to snap back soon. When the reversal comes, it'll be quick and painful. This is the setup in the gold market right now. The metal has absolutely soared. And based on the relative strength index ("RSI"), it recently reached overbought levels. The RSI looks at the recent price action and determines if a rally or crash is too extreme. A reading below 30 signals "oversold" levels, which usually means a rally is incoming. Similarly, a reading above 70 signals overbought levels. A decline usually happens from there. This time around, gold has blown through typical overbought levels. The RSI recently hit 84.5. That's the highest RSI reading we've seen for the metal since 2020. Take a look... [Chaikin PowerFeed] According to this measure, gold has soared too far, too fast... So we'd typically expect lower prices in the months to come. But history shows this pattern hasn't held true for gold. To see it, I looked at each unique instance when gold's RSI soared above 80. That's darn rare. It has happened just 28 other times in nearly half a century. And after those cases, gold tends to keep rising. Check it out... Gold has been a winner for investors for roughly 50 years. It has risen 5.6% a year over that time. But you can do much better if you buy after setups like today's... Similar situations led to 4.5% gains in six months and 11.5% gains over the following year. That's fantastic outperformance – more than double the typical buy-and-hold return. And gold was up 68% of the time a year later, too. The current gold boom recently moved into overbought territory. But that doesn't mean the rally has to end... Instead, history shows more upside is ahead. And that means now is the time to get exposure to gold. Good investing, Brett Eversole --------------------------------------------------------------- Editor's note: Over at DailyWealth, Brett and his team share the investing setups and opportunities they're seeing in the markets. They also discuss other ideas to help their readers safely and steadily build wealth over the long term. DailyWealth publishes each day the markets are open. And it's 100% free of charge – just like the PowerFeed. You can learn more and sign up for it by [clicking here](. Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 +0.36% 7 20 3 S&P 500 +0.95% 126 309 63 Nasdaq +1.54% 21 62 17 Small Caps +0.97% 392 1100 413 Bonds +0.52% Communication Services +2.76% 2 14 3 — According to the Chaikin Power Bar, Large Cap stocks are more Bullish than Small Cap stocks. Major indexes are mixed. * * * * Sector Tracker Sector movement over the last 5 days Information Technology +3.76% Discretionary +3.62% Industrials +1.82% Real Estate +1.62% Staples +1.54% Utilities +1.16% Financial +1.09% Communication +0.81% Energy +0.81% Health Care +0.73% Materials +0.63% * * * * Industry Focus Biotech Services 15 83 34 Over the past 6 months, the Biotech subsector (XBI) has outperformed the S&P 500 by +2.96%. However, its Power Bar ratio, which measures future potential, is Weak, with more Bearish than Bullish stocks. It is currently ranked #17 of 21 subsectors and has moved down 1 slot over the past week. Indicative Stocks [rating] INBX Inhibrx, Inc. [rating] ALLO Allogene Therapeutic [rating] RXRX Recursion Pharmaceut * * * * Top Movers Gainers [rating] RMD +18.89% [rating] GOOGL +10.22% [rating] SMCI +8.9% [rating] BALL +6.65% [rating] NVDA +6.18% Losers [rating] DXCM -9.91% [rating] INTC -9.2% [rating] ODFL -7.24% [rating] FICO -6.94% [rating] AON -6.85% * * * * Earnings Report Reporting Today Rating Before Open After Close ACGL, NXPI BEN, DPZ, ON, PSX, RVTY EG, F, FFIV, PARA, WELL HUM SBAC No earnings reporting today. Earnings Surprises [rating] BALL Ball Corporation Q1 $0.68 Beat by $0.14 [rating] TROW T. Rowe Price Group, Inc. Q1 $2.38 Beat by $0.36 [rating] PSX Phillips 66 Q1 $1.90 Missed by $-0.35 [rating] AVTR Avantor, Inc. Q1 $0.25 Beat by $0.03 [rating] LYB LyondellBasell Industries N.V. Q1 $1.53 Beat by $0.16 * * * * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, [click here](. 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