{"id":15919,"date":"2025-03-15T00:02:53","date_gmt":"2025-03-15T00:02:53","guid":{"rendered":"https:\/\/businesstriumphs.com\/index.php\/2025\/03\/15\/three-reasons-to-consider-gold\/"},"modified":"2025-03-15T00:02:53","modified_gmt":"2025-03-15T00:02:53","slug":"three-reasons-to-consider-gold","status":"publish","type":"post","link":"https:\/\/businesstriumphs.com\/index.php\/2025\/03\/15\/three-reasons-to-consider-gold\/","title":{"rendered":"Three Reasons to Consider Gold"},"content":{"rendered":"
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Even with an impressive run of relative performance thus far in 2025, some investors still remain skeptical of gold\u2019s uptrend.\u00a0Let\u2019s look at the performance of gold through three different angles, all using the best practices of technical analysis.<\/p>\n

Gold Has Dramatically Outperformed in 2025<\/h2>\n

Whether you think gold has merit as a store of value, as a safe haven, or for no reason at all, there is no denying that gold has registered much stronger returns than stocks so far in 2025.<\/p>\n

The S&P 500 index is now down about 4.0% for the year, even with Friday\u2019s strong finish to the week.\u00a0The Roundhill Big Tech ETF (MAGS) is down 12.4%, while the growth-heavy Nasdaq 100 is down about 6.2%.\u00a0The SPDR Gold Shares (GLD), meanwhile, is up another 13.7% in 2025 after an exceptionally strong 2024.<\/p>\n

There have been a number of times over my career where people have pushed back when gold is doing well.\u00a0They have claimed that it\u2019s just an anomaly, or that it shouldn\u2019t go higher because of some particular reason.\u00a0 My answer is always to bring up the chart and remind us both, \u201cThe market doesn\u2019t care what we think!\u201d<\/p>\n

Gold Prices Remain in a Primary Uptrend<\/h2>\n

Let\u2019s break down gold\u2019s outperformance in greater detail using a daily chart of GLD.\u00a0 At a time when many stocks and ETFs have broken below moving average support, gold stands out as remaining above two upward-sloping moving averages.<\/p>\n<\/p>\n

GLD has featured two clear consolidation phases since the end of 2023, one from April to July of 2024, and the other from October through December 2024. In both cases, the ETF bounced off price support a number of times before eventually resolving these patterns to the upside.\u00a0Consolidations are very common in long-term bullish phases.\u00a0What\u2019s important is that the uptrend continues after the price exits the range, as we\u2019ve often seen recently with GLD.<\/p>\n<\/p>\n

We can also apply our proprietary Market Trend Model<\/a> to gold prices, which can help us to better compare the trend in gold to other ETFs and indexes.\u00a0We can see that the GLD is currently bullish on all three time frames, compared to the S&P 500, which is <\/span>now bearish on the short-term and medium-term<\/a> time frames.\u00a0When stocks are in a confirmed downtrend, I prefer to look for things that remain in primary uptrends, and gold fits the bill.<\/span><\/p>\n

Gold Stocks Are Catching Up to Physical Gold<\/h2>\n

I\u2019m often asked whether it\u2019s better to play gold using an ETF that holds physical gold versus one that offers exposure to gold stocks.\u00a0By focusing on the relative performance of gold stocks compared to gold futures, we can perhaps identify where opportunities could lie going forward.<\/p>\n<\/p>\n

Here we\u2019re showing the VanEck Vectors Gold Miners ETF (GDX), along with RSI and then the relative performance of GDX vs. GLD.\u00a0 When that ratio is sloping higher, gold stocks are outperforming physical gold.\u00a0Going into the end of last year, the GLD was outperforming as gold stocks experienced a significant pullback.\u00a0But, so far in 2025, we\u2019ve noticed a strong reversal in relative performance which shows gold stocks are performing better.<\/p>\n

The GDX is now testing its October 2024 high around $43.50, and we would consider a confirmed break above this level as an additional sign that gold stocks could continue a \u201ccatch up trade\u201d versus physical gold.\u00a0And with so many gold stocks starting to appear in the top decile of the StockCharts Technical Rating (SCTR)<\/a>, we see this as an area of emerging strength in the weeks to come.<\/span><\/p>\n

Looking for our daily market recap show?\u00a0CHART THIS with David Keller, CMT<\/a> runs every trading day at 5pm ET over on our YouTube channel!<\/span><\/p>\n<\/p>\n

RR#6,<\/p>\n

Dave<\/p>\n

P.S.<\/strong> Ready to upgrade your investment process?\u00a0Check out my free behavioral investing course<\/a>!<\/p>\n

David Keller, CMT<\/strong><\/p>\n

President and Chief Strategist<\/p>\n

Sierra Alpha Research LLC<\/p>\n

Disclaimer: <\/em><\/strong>This blog is for educational purposes only and should not be construed as financial advice.\u00a0The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.<\/em><\/p>\n

The author does not have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not in any way represent the views or opinions of any other person or entity.<\/em><\/p>\n

Disclosures: Author holds position in GLD.<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Even with an impressive run of relative performance thus far in 2025, some investors still remain skeptical of gold\u2019s uptrend.\u00a0Let\u2019s look at the performance of gold through three different angles, all using the best practices of technical analysis. Gold Has Dramatically Outperformed in 2025 Whether you think gold has merit as a store of value, […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-15919","post","type-post","status-publish","format-standard","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/15919","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=15919"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/15919\/revisions"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=15919"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=15919"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=15919"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}