Gold took a back seat this year…
The metal was one of the largest investment stories of 2025. It finished a multiyear rally to all-time highs in January… Then, prices fell 13% over a painful two-day stretch.
Gold just kept sinking lower. By July, the metal was down 27% from its peak. The excitement from the boom had completely evaporated.
Now, though, prices are reversing. Gold rallied 7% in the first week of August – even with the larger downtrend still in place.
That’s a rare situation. And according to history, it means the metal could rally another 17% over the next year.
Let me explain…
Gold’s Long-Term Boom Might Not Be Over Yet
Gold has a history of long bull markets. Importantly, though, those booms still include periods of falling prices.
From 2002 to 2012, the metal soared hundreds of percent. But along the way, it endured two bear markets… a 22% drop and 29% drop.
That tells us the falling price action in 2026 isn’t an anomaly… And it doesn’t mean the overall boom of the past couple of years is over.
Gold’s recent pop tells the same story. At the beginning of August, gold rallied 7.3% in a week. Take a look…
Gold is staging its first move higher since it began falling in January. And the recent one-week rally could be the start of a major reversal.
You see, gold not only managed a strong rally in one week… it did so while still in a downtrend.
That’s a rare setup. We’ve only seen nine other setups like it since 1975, and they led to consistent outperformance. Take a look…
Gold tends to swing up and down. Even so, it has been a strong performer over the long term. A simple buy-and-hold strategy would have led to 6.4% annual gains over the past 50 years.
You can do much better if you buy after rebounds like this, though. These situations led to gains of 11.4% in six months and 16.6% over a year… Plus, the metal was higher a year later 78% of the time.
Best of all, this recent jump also pushed gold back into an uptrend. It has climbed above its long-term moving average… another signal that has historically led to outperformance.
The metal has cooled off in recent months. But with a reversal in place, the long-term boom might not be over yet.
And if you’ve been waiting for a moment to buy, today’s setup is the best we’ve seen in months.
Good investing,
Brett Eversole
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Source: Daily Wealth
