CHART OF THE DAY – GOLD IS NOT TOPPING

GOLD NOT TOPPING

I’m starting to see a lot of analysts now calling for gold to drop down into a bottom in October. It’s amazing how these guys can consistently get this wrong over and over again. Gold isn’t topping. Gold has been bouncing around in a range for the last 5 weeks giving the 200 day moving average time to catch up to price. Gold won’t top until the dollar cycle bottoms, and that intermediate cycle isn’t due to bottom until late September or early October.

Gold will be making a top in October, not a bottom. But it may have to churn in this range for the rest of August before the next leg up can begin.
gold not topping
The dollar isn’t due to form it’s intermediate and yearly cycle low until October. When it breaks support at 92 we will probably see some kind of waterfall event that could take the dollar back down to 88-89 before the next bounce.
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7 thoughts on “CHART OF THE DAY – GOLD IS NOT TOPPING”

  1. ras

    OK, then, let us add some pm stocks in late August. WTIC weekly chart looks great, nice weekly white candle, after a weekly reversal bar. The effect of rising crude price is uneven on energy stocks. Probably, oil based etfs are better than erx?

    90% of what is posted on the internet by letter writers is unproductive and best ignored. There is no substitute for due diligence and proper risk management.

    1. Gary Post author

      I like XLE for a breakout from that consolidation box. When it does it’s going to run a long way. ERX is a derivative of XLE. You can do the math.

      1. ras

        From monthly charts: max potential for xle is around 35% and average potential for gdxj is around 25%. XLE has likely more upside potential than gdxj? Initial upthrust for WTIC to 60? pull back to 50? then second upthrust to 70+?

  3. duckwhorocks1

    I think Gold is topping.
    Gold is showing very big correlation to Yen strength.
    It will ignore general USD weakness and focus on USD strength against Yen, confounding everyone.

  4. humbled

    Yes increasingly more articles and reports suggesting breakdown in gold price.

    thanK’s Gary for clarification.

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