Gold & Silver Forming Downside Targets; ~1680/GC = Key Support.
05/11/22 The Bridge – Gold, Silver, Cycles, Waves & Ranges – “Silver could turn its weekly trend down (a lagging & confirming indicator that often reverses at the bottom of an initial decline) with a weekly close below 22.11/SIN. It could turn its intra-year trend down with a weekly close below 22.02/SIN.
As a result, the May 13 weekly close is critical!
As for Gold, it cannot turn its weekly trend down until May 20, ‘22, at the earliest (trigger point not yet determined). For the intra-year trend to turn down, Gold would need to generate a weekly close below 1783.8/GCM.
Those are the most decisive – and potentially revealing – indicators and support points… With Gold & Silver moving progressively lower from their early-March cycle peak, they are increasing the probabilities that lower highs will be seen in 3Q ‘22.
4WoLD
From a slightly broader perspective, the ‘4th wave of lesser degree’ support in Gold (March ‘21 low near 1680/GC) is the most decisive level of support with regard to the 1 – 3 year outlook in Gold.
That level would have to hold if Gold is going to provide any opportunity for higher highs in the coming years. Otherwise, Gold would confirm a multi-year peak.
This action, and Gold’s double-top near 2080/GC, are adding validation to the 5 – 10 year outlook and expectations regarding the 40-Year Cycle.
For 5 – 7 years (from 2014 – 2020), Gold was forecast to experience a new multi-year advance from late-2015 into late-2020 – possibly extending into May 2021 – before a multi-year top took hold.
That was in conjunction with long-term analysis for the US Dollar and the 40-Year Cycle of Currency Wars. The US Dollar was forecast to lose value versus Gold from 2016 – 2021, before undergoing a new advance as Gold was peaking.
(The Dollar Index, which often masks the underlying relationship between Gold and the US Dollar, had separate and sometimes conflicting analysis.)
Gold surged into Aug ‘20 and the Dollar Index bottomed in May ‘21 (divergence), corroborating that 40-Year Cycle analysis and ushering in a multi-year period of potential consolidation in Gold.
‘A-B-C’ Target
If Gold did set a wave ‘V’ peak in March ‘22, a couple levels of corrective waves would be expected to follow. The first would be an ‘a-b-c’ decline of some sort. That is what has been taking place since March 8 with Gold’s April 25 breakdown (below the low of the ‘a’ wave bottom) confirming… [reserved for subscribers].”
Gold reached major upside targets and wave objectives in early-March ’22 (near 2080/GC) – precisely fulfilling time and price targets for a wave ‘5’ of ‘V’ major peak. At the very least, the highs near 2080/GC should spur an overall correction back to ~1680/GC – a pivotal and decisive level of 1 – 2 year support for Gold. Silver is poised to turn weekly trend down and would reinforce significance of early-March ’22 cycle highs. The May 13 weekly close could confirm this negative signal.
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Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.