If "bull market history" repeats, will gold prices surge to $6,000 next spring?
Bank of America’s Hartnett pointed out that although gold prices have surpassed $4,000, structural bulls in gold remain scarce. The policies of the new Federal Reserve Chairman and the upcoming gold revaluation may drive devaluation trades. Historical data shows that in the last four bull markets, gold prices averaged a 300% increase, which could mean that gold prices are expected to reach $6,000 by next spring
Bank of America’s Hartnett believes that despite gold prices breaking through $4,000 this week, "few are structurally long on gold" (he calculated that within Bank of America, gold accounts for only 0.5% of private client assets under management and 2.3% of institutional assets under management).
Meanwhile, the early selection of the new Federal Reserve Chair + prosperity/bubble policies (see Argentina's bailout plan) + especially the upcoming gold revaluation (1934 and 1973) all favor devaluation trades. Although history cannot predict the future, during the last four bull markets, gold prices averaged an increase of about 300% over 43 months, which suggests that gold prices could peak at $6,000 by next spring.
