On gold's 6-month chart, however, we can see that it has had a nice run in recent weeks that has resulted in it becoming rather extended, and with sentiment readings now very bullish, we should not be surprised to see a modest pullback that would probably be occasioned by a relief rally in the dollar to alleviate its oversold condition. We can use any such pullback to do additional buying, especially of gold and silver stocks.
Note .... The gold bull market in the 1970s and 1980s happened even as the Fed tested record-high interest rates. The yield on the 30-year Treasury bond rallied sharply during the late 1970s, eventually topping 15% in 1981. Gold rallied from about $100 per ounce in 1976 to over $850 per ounce in 1980.