Saturday, June 3, 8:41 am EST. This, just in!

“Ben Morris has been keeping a close eye on gold…

Back in April, he noted that gold was close to breaking out of a multiyear chart pattern that could send prices much higher. But it wasn’t yet official, so Ben recommended being patient and waiting for confirmation before getting too bullish on gold and precious metals.

That was good advice – gold reversed and moved lower for several weeks.

In the past month, gold has been moving higher again… And it’s close to breaking out of this long-term pattern.

I haven’t recommended opening a new bullish position in gold stocks since mid-March. We’ve been waiting for a better trade setup… We’ve been waiting for gold to break out of its long-term “wedge”…

As Ben explained, when an asset trades within a wedge pattern, it becomes compressed like a spring. When it finally breaks out, it often makes a big, powerful move.

Today, gold is back near the top of the wedge. It’s once again trading right around the level at which it could begin a big breakout to the upside…

This is a bullish sign…

Still, Ben continues to recommend patience before getting too bullish on gold and precious metals again…

Now, we don’t want to jump too soon. Trend lines like the ones in the charts above aren’t exact… And they aren’t foolproof. Sometimes assets will break out by a little bit and then fall right back down into their trading ranges.

I’d like to see gold trade above $1,300 per ounce before we make our move. And that could happen soon… On June 14, the Federal Open Market Committee (“FOMC”) will announce its next interest rate decision. Futures traders are placing the odds of a rate hike at 100%… And they’ll likely be right.

The common view is that higher rates are bad for gold. But… the last two times the FOMC raised rates, gold bottomed the following day… If that pattern continues, we could see gold prices drift lower before the decision and rally after it.

No matter what happens, though, our stance hasn’t changed. We want to see gold break out (convincingly) before we buy. That’s when we’ll have the best trade setup… Our downside risk will be low. And our upside potential will be enormous.”

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