Gold Plunging to 1450/GC Target; Silver & XAU Cycles Bottom March 12 – 16.
03/14/20 Weekly Re-Lay: “Gold & Silver are plunging after Gold spiked to new highs and fulfilled weekly, monthly, and larger cycles that peaked in early-March ’20… metals were expected to plunge into mid-month with Silver focused on a 10 – 11 trading day low (Jan. 14) – low (Jan. 29) – low (Feb. 12) – low (Feb. 28) Cycle Progression that identified March 13/16 as the most likely time for a low. It is fulfilling that now and could spur a quick, sharp rebound after mid-month…
The XAU is fulfilling the potential for a larger-magnitude drop after reaching multi-month and multi-year upside objectives in late-Feb. ’20. At that time, the XAU finally attacked its 1 – 2 year upside target (~110.0/XAU), fulfilling the final criterion for a more significant (multi-month) peak.
In doing so, the XAU retested but remained below its 2016 peak (114.71), leaving it in a multi-year trading range. At that time, it precisely fulfilled a geometric ~180-degree/~6-month high (Feb. 20 – 28, ’19) – high (Aug. 20 – 28, ’19) – high (Feb. 20 – 28, ’20) Cycle Progression – peaking 360 degrees from its late-Feb. 2019 top.
In early-March, several key gold/silver stocks corroborated the bearish outlook and triggered new sell signals on March 5/6 – projecting dynamic ‘3rd’ wave declines while validating the potential for a drop into mid-month (to fulfill a ~60-degree/ ~2-month low (Sept. 13/16) – low (Nov. 12) – low (Jan. 14) – low (Mar. 12 – 16) Cycle Progression).
Reinforcing that, their inversely-correlated daily 21 MARCs entered a 2 – 3 week period when they were expected to apply negative pressure on unfolding price levels. That coincided with analysis for a higher-magnitude sell-off in the XAU.
As it has done repeatedly over the past decade, the XAU has sold off far more sharply (on a proportional and wave-structure basis) than Gold has. It has dropped several points lower than expected, during this initial plunge, but is now attacking its monthly HLS (extreme downside target for March ’20) at 71.87/XAU. 6 – 12 month support comes into play around 66.00/XAU.”
Gold, Silver & gold stocks (XAU Index) reinforcing overall outlook for 2020/2021 (see related Special Reports and The Bridge publications). Gold, Silver & XAU reached upside objectives in late-Feb./early-March and ushered in a corrective period in which Gold should undergo a sharp correction to 1450.0/GC… in a relatively short period of time. Silver & XAU have been focused on March 12 – 16 for next decisive low.
Where Could Silver & XAU Bottom?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.