Gold Correction Underway

Taxes

© 2019 Bloomberg Finance LP

Here is a summary of the bearish influences on the metal price :

Sentiment is too bullish.

The weekly graph shows a hook sell signal, a sign of coming weakness.

The monthly cycle topped on the 11th and the weekly cycle does likewise on the 17th.

The combination of the bullish sentiment and the cycle tops point to a volatile week to the downside for gold. There is an irregular cycle that bottoms on the 20th which has set off short-term rallies in the past. This is likely to touch off a short-term rally in the last week of the month.

Both cycles bottom in the second week of October. I expect gold to fall to at least $1440, the 38.2% retracement of the prior uptrend, before the uptrend resumes.

Chart 1: Gold Weekly Cycle

Cycles Research Investments LLC

Chart 2: Gold Monthly Cycle

Cycles Research Investments LLC

Articles You May Like

I was charged $150 for missing a doctor’s appointment. Turns out these fees are on the rise
Walgreens tops quarterly revenue estimates, but narrows profit outlook in ‘challenging’ economy
Two fresh ways to play the weight loss and megacap tech hype
Almost half of voters say student loan forgiveness is a key issue in 2024 election, survey finds
Top Wall Street analysts like these dividend stocks for portfolio income

Leave a Reply

Your email address will not be published. Required fields are marked *