Gold’s Daily Cycle has drifted lower and from a timing perspective has reached our “fork in the Cycle”. At some point early next week we should see a significant move as gold reveals its intended path. I don’t have particularly strong opinions either way here, but from what evidence I have, I’m interpreting it as bearish for gold.
It’s not that gold is necessarily acting bearishly; it has actually held up fairly well these past few days during a number of intra-day raids and steep declines. Although not a clean pattern, there is some resemblance to a consolidation/bull flag developing on the Daily Chart, and this could support a new move above $1,500 and up to a Daily Cycle Top.
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What I do not like is the reaction from Silver. Even as Crude and Copper rallied very bullishly these past few days, Silver barely flinched. I’ve studied Silver’s trading patterns for years now I rarely see a positive resolution when Silver “hangs around” lethargically after a massive decline. Silver is a volatile and speculative asset and the lack of interest at these prices has me thinking the decline is not yet over.
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The uncertainty on where gold and silver are headed over the next two weeks is purely because the dominant Investor Cycle has no clarity. I can’t tell you (nobody can) whether this is Week 3, 11, or 18 of the Investor Cycle and therefore I don’t know which Daily Cycle we’re in. Without this knowledge, we don’t know which path in the folk gold will take. It’s either lower (Left Translated, Likely Week 11 or 18) or higher (Right Translated, likely Week 3).
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