For medium term gold traders this is the key trend line.
If you believe that high inflation is coming there will be a drive for hard assets like gold
and gold alongside gold mining stocks could be about to break out higher. For those who are hyper gold bulls then go with the break of this trend line and stay long as long as price closes above this trend line is the trade. The bearish question marks being asked about Bitcoin and its environmental impact will only help gold. See Adam’s post here.
What will change this outlook
Any signs of bond tapering from the Fed. In 2013 when the Fed announced bond tapering Gold fell sharply by around 20%. See chart above.
As long as inflationary fears are high and the Fed is sticking to their bearish script then gold longs make sense and use this trend line to manage risk.