spike-high we forecasted in gold last week appears complete. Prices collapsed to $1874.20 by Wednesday before rebounding. We think gold could retest support near $1660 in late September, which will present the next great buying opportunity.” data-reactid=”12″>The spike-high we forecasted in gold last week appears complete. Prices collapsed to $1874.20 by Wednesday before rebounding. We think gold could retest support near $1660 in late September, which will present the next great buying opportunity.
Gold and precious metals are extremely cyclical. Roughly every 6-months prices form an intermediate cycle low – the last low arrived in March. The current decline is just starting and may last 4 to 6-weeks. Our preferred target window (gold chart below) supports a bottom in late September or early October.
Gold is in a powerful bull market – we do not recommend shorting or trying to trade every swing. Today’s markets are more volatile (news-driven) than ever – one black swan event could wipe out your entire trading account…if not properly managed.
After peaking at 450, our Gold Cycle Indicator (currently 373) is declining – suggesting metals and miners have started their intermediate-degree corrections.
Noticing the shift in volatility, we switched to an accumulation strategy adding to our long-term holdings only when the Gold Cycle Indicator falls below 100. This strategy dramatically reduces stress and trading anxiety.
