• 287 days Will The ECB Continue To Hike Rates?
  • 288 days Forbes: Aramco Remains Largest Company In The Middle East
  • 289 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 689 days Could Crypto Overtake Traditional Investment?
  • 694 days Americans Still Quitting Jobs At Record Pace
  • 696 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 699 days Is The Dollar Too Strong?
  • 699 days Big Tech Disappoints Investors on Earnings Calls
  • 700 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 702 days China Is Quietly Trying To Distance Itself From Russia
  • 702 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 706 days Crypto Investors Won Big In 2021
  • 706 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 707 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 709 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 710 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 713 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 714 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 714 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 716 days Are NFTs About To Take Over Gaming?
Strong U.S. Dollar Weighs On Blue Chip Earnings

Strong U.S. Dollar Weighs On Blue Chip Earnings

Earnings season is well underway,…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

  1. Home
  2. Markets
  3. Other

Gold Cycle Running Out of Steam

Pushing the bear back

I predicted that gold would rally last week up to the $1,155 area, and was also equally unsurprised when it was rejected the first time by that declining (see green trend-line on chart) resistance line. Those are standard or obvious Cycle pivot points, but how it continued lower yesterday to fall well below the 10 day moving average was not a "typical" development if you're a supporter of the bull case in gold.

This is after-all supposed to be the most bullish period for gold, the heart of the 2nd Daily Cycle is where most of the solid gains are made during an uptrend. We wanted to see only a brief, possibly just an intra-day break below the 10dma, followed by a rally to smash through that trend-line. There is obviously still some time left for gold to rally, but the point is that it has taken up far too much of the 2nd Daily Cycle while remaining well below recent Cycle highs. During a series of bullish Cycles, new highs are made quickly and sustained relentlessly, they certainly do not languish like this.

So as I covered this past weekend (premium report) and warned then, I'm telling the bulls again to watch out. This is playing out just as past bear market Cycles have. That's four years' worth of Cycles and each one behaved and performed almost like this one has so far. And sadly we do not see any bullish divergences from Silver or the precious metal miners to hang some hope on. As I have consistently maintained, during any bear market we must assume surprises will move to the downside and that the trend will push the asset lower.

Remember though, Cycles depict the natural ebb & flow process of an asset. And in the very short term, a bounce out of a Half Cycle Low is now due and expected. Another test in the coming days of that resistance line is likely, but there is a very good chance that same resistance area will cause gold to fall sharply towards the next Daily Cycle Low. If the bulls are serious and want to significantly change this outlook, then they need to smash through the resistance area and make new Cycle highs above $1,156. Until that point, please be mindful of the dominant trend, it is much more powerful than us all combined.

Daily Gold Chart

 


Don't miss our annual Membership Sale, 50% off your first Quarterly Membership, ends Saturday October 3rd! Click HERE for details.>

 

Back to homepage

Leave a comment

Leave a comment