Gold Poised for Add’l Drop; XAU/HUI Cycles Project Bottom by Oct 1.
09/22/21 Weekly Re-Lay Alert – Gold & Silver dropped to new recent lows with Silver dropping right to monthly support (22.11 – 22.35/SIZ) and pivotal 6 – 12 month support that extends down to 21.96/SI…
It has also fulfilled expectations for Gold to see a quick bounce back to 1780 – 1790/GCZ. Gold just fulfilled that while twice neutralizing its daily downtrend and rebounding to test its declining daily 21 Low MAC.
As a result, it has rebounded as far as an upside correction should… and would not signal additional strength (and turn its daily trend up and close above its daily 21 Low MAC) until a daily close above 1788.4/ GCZ. As a result, the action of the next 1 – 2 days should be decisive.
Copper, Platinum & Palladium have also triggered sharp bounces to near-term resistance levels – reinforcing the significance of the next 1 – 2 days…
The XAU has bounced mildly from monthly support (121.65 – 123.29/XAU) but needs a daily close above 125.50/XAU to show the first signs of bottoming (on at least a 2 – 4 week basis)… The weekly HLS indicator (in XAU & HUI) also projects a multi-week low at any time between now and Oct 1…
The HUI has entered the time when a consistent 29 – 31 week low (Nov ’18) – low (May ’19) – high (Dec ‘19/Jan ’20) – high (Aug ’20) – low (Mar ’21) – low (Sept 17 – Oct 1, ’21) Cycle Sequence portends a multi-month low, so the daily price action could have a significant impact on intermediate expectations.”
Gold & Silver are fulfilling analysis for another sell-off with the XAU & HUI signaling that a multi-multi-month bottom should take hold by Oct 1, ‘21. Silver concurs and a 3 – 6 month (or longer) bottom at that time would fulfill multiple cycles and potentially set the low of a ‘c’ wave decline… ushering in the time for a new rally into 1Q ’22.
The XAU fulfilled major cycle highs in Aug ’20 and May ’21 and is on target for a drop toward ~115.00/XAU as part of this initial decline. That is where a 2 – 3 month (or longer) bottom is most likely.
How Does Recent Action Validate the Multi-Year Outlook?
What does this mean for the next multi-month cycle high in ~Feb. ’22??
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.