Gold & Silver Poised to Enter Multi-Week Rebounds; Gold Tests Key Support.
07/20/22 Weekly Re-Lay Alert – “Gold & Silver remain negative and would not show any signs of bottoming until (at least) daily closes above 1731/GCQ & 19.45/SIU. Gold is nearing its most critical level of intra-year and 1 – 2 year support near 1680/GC. If/when a low is signaled, these metals should bounce back toward their June ’22 highs – key levels of ‘4th wave of lesser degree’ resistance.
The XAU & HUI remain weak, selling off to into mid-July and to their lowest levels since 2Q ’20. That reinforces the significance of their April ’22 peaks – the latest phases of both ~10-month & ~5-month (21 – 23 week) high-high Cycle Progressions. That allowed the XAU to reach its intra-year HHL objective (171.43 High – 137.40 High = 103.37/XAU HHL objective).
The April ’22 high was the 7th in that 21 – 23-week sequence and was 23 weeks from its Nov ’21 high, which was 23 weeks from May ’21 peak.”
Gold & Silver are reinforcing multi-month cycles that peaked in late-Feb/early-Mar ‘22 while Gold was fulfilling the primary upside target for a ‘5’ of ‘V’ wave peak (a top that is likely to hold for at least 6 – 12 months). The XAU/HUI Indexes set divergent peaks in April ’22 (after Gold & Silver had peaked) – fulfilling very consistent ~23-week & ~10-month cycles in both. The ~10-month cycle projects a future peak in Feb ’23 and provides important clues as to when an intervening multi-month bottom is most likely.
Multiple signals (weekly trend remaining down, intra-year trend turning negative) reinforced signs of weakness and corroborating 2Q ’22 analysis for Gold to drop back to ~1680/GC (see 5/11/22 issue of The Bridge as well as related publications) as part of multi-year wave structure and a larger decline in Gold now that a wave ‘V’ peak is likely intact. Gold has just attacked that support so a 1 – 2 month bottom could take hold.
What Would Close Below 1680/GC Mean for Gold? …And When is that More Likely?
How Does Gold/Silver Action Reinforce 2022 Outlook??
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.