Gold, Silver & Gold Stocks Prepare for Culminating Rally. Dollar Correction Could Trigger Accelerated Spike Up in Gold.

February 14, 2019 Eric S. Hadik

02/14/19 Weekly Recap: Gold & Silver spiked down, with both testing important intra-year trend support levels. Gold’s drop to 1304.7/GCJ fulfilled a ‘c’ wave drop while testing and holding daily 21 High MARC support and the year-opening range support (1303.1 – 1306.5/GCJ) as the Dollar prepares for a spike high and reversal lower. This is unfolding as Gold enters the final weeks of a projected 6 – 7 month advance from mid-August into late-Feb./early-March 2019 – the time when sharp moves become most likely. To reiterate from recent Weekly Re-Lays:

————————————————–

02/02/19 Weekly Re-Lay: “Gold & Silver rallied into late-Jan./early-Feb. cycle highs and could see a brief pullback before a rally into March… That corroborates that 6 – 7 week cycle while fulfilling multi-month cycles and analysis for a peak in late-Jan./early-Feb. as Gold fulfills the overall outlook for a multi-quarter advance from its mid-Aug. bottom (and Nov. secondary low) into March 2019. That remains the outlook and would be reinforced if a couple weeks of consolidation unfold…

If a pullback takes hold now, mid-Feb. is expected to set the next (ascending) 1 – 2 month low – the latest phase of a ~90-degree cycle in Gold that has timed lows in mid-May, mid-Aug. & mid-Nov. 2018…

Gold & Silver surged into late-Jan./early-Feb., adding another 1 – 2 week rally to the overall advance. That validated Gold’s daily trend & daily 21 MAC signal (Jan. 24) when it completed a 3-week correction without turning its daily trend down. That low reinforced the potential for a future low in mid-Feb. with a 20 – 21 day high-low-(low) Cycle Progression targeted for Feb. 13 – 14.

This latest rally reinforces the outlook for overall advances from Nov. ’18 into March ’19 – a scenario that could be reinforced by a brief pullback into mid-Feb.”

————————————————–

02/05/19 INSIIDE Track Update: “The recent high arrived at the midpoint of the 6 – 7 week low-low-low-low-(high) Cycle Progression that timed the early-Jan. peak (and next comes into play in late-Feb.).

That corroborates that 6 – 7 week cycle while fulfilling multi-month cycles and analysis for a peak in late-Jan./early-Feb. as Gold fulfills the overall outlook for a multi-quarter advance from its mid-Aug. bottom (and Nov. secondary low) into March 2019. That remains the outlook and would be reinforced if a couple weeks of consolidation unfold.

3 – 5 week and 1 – 3 month traders could have exited long positions in Feb. Comex Gold futures w/avg. gains of about $6,200/contract on the overall trade.

The XAU rallied into late-Jan./early-Feb. cycle highs after correcting into Jan. 18 and reaching its extreme weekly downside target (HLS) and holding that initial support near 68.00… From a cycle basis, this Index is still expected to see another 2 – 4 week peak in late-Jan./early-Feb. and then a slightly larger-degree peak in March 2019.”

————————————————–

02/06/19 Weekly Re-Lay Alert: “Gold & Silver are in the most likely time (late-Jan./early-Feb 2019) for a larger-magnitude peak… That was/is expected to trigger a quick, ~2-week correction into mid-Feb. – the latest phase of a ~90-degree cycle in Gold that has timed lows in mid-May, mid-Aug. & mid-Nov. 2018. The Jan. 24 low – affirmed by the daily trend pattern in Gold – produced a validating 20 – 21 day high-low-(low) Cycle Progression targeted for Feb. 13 – 14.”

————————————————–

02/09/19 Weekly Re-Lay: “Gold & Silver are fulfilling the potential for a brief pullback before a rally into March… This correction could stretch into mid-Feb. and set the next (ascending) 1 – 2 month low during the latest phase of a ~90-degree cycle in Gold that has timed lows in mid-May, mid-Aug. & mid-Nov. 2018… The Jan. 24 low produced a validating 20 – 21 day high-low-(low) Cycle Progression targeted for Feb. 13 – 14…

One of the more intriguing aspects of this entire rally in Gold – from Sept. ‘18 into the present – is that it has coincided with a rally in the US Dollar, from Sept. ’18 into the present…

The question is what could happen if the Dollar does experience a decent sell-off from mid-Feb. into March 2019… and potentially longer?

It might open a narrow window of opportunity for Gold to accelerate higher, since it now has almost six months of upward-developing momentum under its belt.

That is often how these trends work, with the largest and fastest moves at the end of a cycle…

The XAU rallied to new highs after correcting into weekly cycles on Jan. 14 – 18 and reaching its extreme weekly downside target (HLS) and holding that support near 68.00… From a cycle basis, this Index is still expected to see another, slightly larger-degree peak in March 2019.

————————————————–

02/13/19 Weekly Re-Lay Alert: “Gold & Silver are correcting, after fulfilling intermediate cycles and expectations for a multi-week peak in late-Jan./early-Feb 2019 (on the way to a higher magnitude peak in March 2019). This correction could culminate in the coming days…”

————————————————–

Gold, Silver and Gold/Silver Index (XAU) are entering one of their most pivotal and decisive periods during the last two weeks of February. They have fulfilled cycle analysis for a pullback into Feb. 13/14 before a culminating rally into late-Feb./early-March. Gold & Silver completed ‘a-b-c’ corrections, a precursor to another (final?) rally in the second half of February. Silver just turned its daily trend down, which should spur a reactive 2 – 3 day rally when Gold could see a new, quick surge. Dollar action and cycles have ushered in a small window of time when a Dollar sell-off could trigger an accelerated rally in Gold – the type of move that often completes an overall uptrend.

What Could Be Expected from the Coming Days?

Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.

tagged with Copper, Gold, Gold Stocks, Palladium, Platinum, Precious Metals, Silver, XAU Index

All posts