Gold Trading: Gold Reinforcing Projected Drop to 1460 – 1470/GC; What Should Follow???
09/14/19 Weekly Re-Lay: “Gold, Silver & the XAU reversed lower from cycle highs in late-Aug. and could decline into late-Sept…
Gold & Silver have sold off sharply after surging into the latest phase of an extremely unique combination of weekly cycles – arriving in 3Q ’19, the projected time for a multi-month (2 – 3 months and potentially 3 – 6 months) peak.
Precious metals peaked just as the Gold/Silver ratio spiked to multi-month lows – below levels last seen in Oct. ’18 & Jan. ’19 (~82/1). That spike to 6 – 12 month support – combined with a myriad of cycles peaking – showed that Gold & Silver were reaching an extreme and poised for a setback.
To reiterate, this latest Gold peak provides the opportunity for the onset of a subsequent correction of one higher magnitude than the most recent one. So, instead of (roughly) equating to the magnitude of its June – Aug. consolidation, the next correction could be more like the late-Feb. – late-April correction (or potentially larger).
If that is the case, it would have Gold declining to (at least) 1460 – 1470/GCZ.
Gold quickly validated its Aug. 26 – Sept. 4 cycle highs, triggering a weekly Double-Key AND outside-week/2 Close Reversal lower last week, while stretching to its weekly HLS (1510.9/GCZ).
That projected an additional 2 – 3 week sell-off while also signaling that an intermediate low could be seen by/in late-Sept. That remains the 1 – 4 week outlook. Silver has the potential to drop back to 16.50 – 16.600/SIZ– the levels of the previous (mid-Feb.) highs and its ascending weekly 21 High MAC… at which point it should find support. That range is also just below monthly support…
The XAU confirmed its Aug. 28 peak and is still expected to decline into Sept. 23 – Oct. 4 – perpetuating an 18 – 19 week low-low-low-(low) Cycle Progression…A drop to at least 86.00 – 86.80/XAU is likely, and potentially back to 80.25 – 80.80/XAU. This comes after the XAU surged right to its range-trading target near 100.60/XAU (~60.60 – ~80.60 – ~100.60) – peaking in line with daily & weekly cycles.
The initial downside target (~86.00/XAU) is corroborated by multiple factors in the coming week. The range around 86.20/XAU includes the coming week’s Raw SPS (weekly support), last week’s HLS (extreme downside target) and the ascending weekly 21 High MAC.
~86.00/XAU is also the level of last month’s low and the previous (late-June) peak – intermediate resistance turned into support. A ‘c = a’ wave target arrives just below there. All of that increases the potential for 86.00 – 86.20/XAU to be tested and for an initial bounce to ensue.”
Precious metals confirming projected late-Aug./early-Sept. peaks and reinforcing cycles converging in March 2020! Gold targeted for intermediate drop to 1460 – 1470/GC… and then…
What Should September Sell-off Signal?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.