Chart of the Day - Tuesday, November 28, 2023

Today’s Chart of the Day was shared in a note by John Roque of 22V Research (@daChartLife). Gold is on track to book its highest weekly close in history. It hasn’t reached all-time highs on a daily basis yet, but it’s less than 2% from doing so. Many have given up on the yellow metal, as it’s fumbled numerous breakout attempts in the post-Covid era. It’s completing a three-year base, next to a nine-year base, which together form a 12-year Cup & Handle pattern. The annotations on the chart highlight several base breakouts that were followed by triple-digit returns. In the note, John commented, “Breakouts over nearly 50 years have produced equity-like gains. Maybe gold doesn’t possess any of the sexiness A.I. offers, but sometimes wisdom wins out.”