After consolidating for four weeks, gold prices finally broke out from a pattern of higher highs and higher lows (see the following chart). Gold closed the week at $1,518.20 per ounce, setting up a run at the previous high set last October.

Some well-known analysts are announcing their outlooks on gold for the coming year. CNBC reports, “Blackstone’s Brian Wein offered up a bonus 2020 market surprise to CNBC on Tuesday [December 24]. The Wall Street veteran said to ‘watch gold in 2020.’ Wein’s prediction came as gold rose to its highest levels since early November.”

We have suggested that this consolidation period presented an opportunity for investors to increase their gold portfolio allocations. This breakout has seen an over 3% rise in gold prices.

Even so, there remains a good possibility that prices will move on to challenge recent highs. With gold’s long-term bullish fundamentals still in place, it may still be a good time for investors to add gold to their portfolios.

Rick Andrews is president of Avant Capital Management.