Gold Headed for ~1300.0/GCQ…
06/05/17 INSIIDE Track Intra-month Update:
“Gold & Silver remain strong after setting another higher low on May 8–12th, during the latest phase of a 20-week high-low-(low) Cycle Progression in Silver (related to the 19-week cycle in XAU). That low should hold for several weeks… if not longer.
Gold remains in the strongest technical position, having remained in an intra-year uptrend and weekly 21 MAC uptrend. Combined with other bullish factors, Gold has been projected to see a rally to new 2017 highs (even as related Gold stocks remain under pressure).
Friday’s outside-day/2 Close Reversal higher signaled an extension to this advance and the likelihood for higher levels in the coming week. It also completed an Intra-month V Reversal higher, projecting upside follow-through in the first part of June. The latest 1–4 week buy signal (Weekly Re-Lay) remains intact in Gold and is also projecting additional gains.
That is still in sync with their weekly LHR indicator – that projects an intermediate peak no later than June 9th… Gold is expected to spike above 1300/GCQ…
The XAU has declined since rebounding into mid-May & attacking monthly resistance (87.79–88.61/XAU)… while also reaching its weekly LHR (intra-week extreme upside target) – a signal that projects a 1–2 month peak.
It is in the process of turning its weekly 21 MAC back down as it vacillates around the lower extreme of that channel. With its weekly trend remaining down (throughout its early-May bounce) and its intra-year trend back to neutral (from up), the XAU is in a position to see another sell-off take hold after the current consolidation is exited.
If Gold does spike above 1300.0/GCQ, that could provide a few days of support for the XAU, but once Gold has signaled a top – that could have the effect of yanking the rug out from under the XAU Index.
That would then allow the XAU to see a new drop into June 16–20th, the next intermediate cycle low (see June 2017 INSIIDE Track for additional analysis) as Gold & Silver pull back from their latest peaks.
That is the textbook pattern of stair-step moves that can create the kind of divergence that continues to unfold in this arena. Each time there is a rally, the metals lead that rally and see greater advances than the XAU. Then, the XAU leads the declines and sees sharper drops as Gold & Silver correct from their latest highs…
On a near-term basis, the XAU turned its daily trend down, ushering in the time for a brief, 1–3 day bounce while also confirming a multi-week top (and projecting additional downside after that brief bounce). That is unfolding, reinforcing the potential for a new decline into June 16–20th.”
Gold signals 1–3 day extension to intermediate uptrend; enters most likely time for peak (June 6–9th). Buy signal nearing fruition as Gold attacks 1300.0/GCQ & fulfills weekly trend pattern. Top could take hold at any time!
Gold Stocks (XAU) surge to multiple resistance levels while completing projected multi-day bounce. New decline could resume as soon as June 7th. Subsequent drop into June 16–20th expected.
See Weekly Re-Lay & INSIIDE Track for more specific expectations, targets & trading strategies.