Last week, gold prices ended the week at $1480.90 per ounce, continuing in an upward consolidation pattern of higher highs and higher lows (see the following chart).

Some gold market analysts see this consolidation as a place where prices have begun turning back upward. A recent report from Wolfe Research by John Roque and Rob Ginsburg states “‘Gold got very overbought into late August/early September, and since then it corrected its overbought reading …

“‘In this case, the two authors say the ‘turn’ is on, and the next short-term move will likely see a surge of around 15% over the next 75 days or so.

“‘Prior turns, and there have been 7 of them [since 2015], show gold rallying, on average, 15% over nearly 75 days, with a median gain of 14% over 83 days,’ their report states. Or put another way, if history is a guide, then expect gold prices to rally 14% to $1,679 an ounce by the end of February, which this year, more or less coincides with Ash Wednesday.”

With these historical precedents’ rally potential and gold’s long-term bullish fundamentals remaining in place, now could be an opportune time to add gold to an investment portfolio.

Rick Andrews is president of Avant Capital Management.