Explanations of "Gold" investment-related terms A to Z

A bullish divergence between the price and a technical indicator is a moderately useful tool for detecting a coming reversal in the bearish trend. Bullish divergence in gold is therefore a moderately useful buy signal for the gold market.

A bull market is characterized by optimism, investor confidence and expectations that prices will tend to go up. During a bull market in stocks prices are expected to rise even after severe declines. In the precious metals market, however, the situation is quite different. Bear markets can last for a long time and there is no confidence that serious slumps will be followed by periods of recovery. In case of precious metals, the secular gold bull market started in 1999. Some say that it ended in 2011, but this doesn't seem to be the case in our opinion as the fundamental drivers remain in place and the key Fibonacci retracement (61.8%) wasn't broken.

In commodity space, buoyant market is generally coined with a market where prices rise with ease when there are sufficient signals of strength

The business cycle is the regular occurrence of booms and busts. The economy does not grow evenly and continuously. Instead, there are periodic upward and downward movements of general business activity. There are expansions and contractions.Technically speaking, the business cycle is often defined as cyclical ups and downs of Gross Domestic Product (GDP) around its long-term growth trend. There are many theories why the economy develops cyclically, one of them is the Austrian business cycle theory. The gold - business cycle's link is one of the more important fundamental issues that one needs to analyze when taking long-term investment decisions.