Gold & Silver Declining
05/19/16 INSIIDE Track Intra-month Update:
“Gold & Silver continue to drop after attacking 3–6 month upside objectives (~1305–1315.0/GC & 18.040–18.140/SI) and fulfilling the primary objectives for 2Q 2016 – ushering in what could be a lengthy period of volatile congestion (but not eliminating the potential for spike highs in June). Those price levels remain the most significant resistance through June 2016.
This price action further corroborates multi-year cycles, multi-month cycles projecting a 3–6 month surge following the mid-Dec. buy signals & multi-week cycles that projected the second advance to unfold in mid-to-late-April, leading into weekly cycle highs (in Gold) on April 25–29th… and daily cycle highs in Silver on May 2nd/3rd.
Similar to Stock Indices last week, Gold’s early-week spike above last week’s high set the stage for a weekly 2 Close Reversal lower IF it can close the week below 1272.7/GCM. That Monday spike had Gold attacking its daily LHR as it tested weekly resistance – a textbook setup for an intra-week peak & reversal lower. Silver went right to its daily LHR (17.400/SIN) and also set a top.
Both have dropped sharply since then, with Gold turning its daily trend down – confirming an intermediate top – while Silver turned its daily 21 MAC down. Gold is poised to do the same tomorrow. All of this is increasing the potential for a sharp drop to 1190.0/GC & ~15.90/SI (possibly as low as ~15.00/SI) as part of this latest correction – in fulfillment of the 1–4 week sell signal triggered on May 6th (Weekly Re-Lay).
The XAU remains in a corrective mode but still needs to close back below 82.70/XAU to signal a new wave down.”
May 6th sell signal remains in effect and could last another 1–2 weeks. Gold & Silver drops unfolding… Spike high still likely in mid-June (see April 2016 Weekly Re-Lays)… and could pave way for biggest surprises in 3Q 2016. 2016 – The Golden Year & 40-Year Cycle: The Golden Years Reports elaborate on outlook.