When Gold’s Real, Uninflated Price Breaks Out – And How to Tell

By John Gideon Hartnett, Rafi Farber – Mises Institute

From an analysis of gold priced in terms of 1959 USD, which in effect strips out the inflation effect on the gold/dollar exchange rate, there is a massive consolidating triangle pattern going back to 1980 that is now reaching its apex. From an analysis of this pattern, it seems that gold is about to break out to the upside in current dollar terms. Below we explain how we came to this conclusion.