Gold Preparing for Plunge to 1450/GC Before Next Rally; Silver & XAU Concur.
02/29/20 Weekly Re-Lay: “Gold & Silver spiked higher to begin this past week as they were fulfilling the latest phase of Gold’s 54 – 59 week cycle, 27 – 29 week cycle, ~14-week cycle (and even the overriding ~112-week cycle) – all of which have been described repeatedly over the past couple years.
The largest of these created a 112-week low (Nov. 30 – Dec. 4, ’15) – high (Jan. 22 – 26, ’18) – high (Feb. 17 – 24, ’20) Cycle Progression that reached fruition this past week. Gold also completed another 14 – 15 week rally, matching the duration of its May – Aug. ’19 & Nov. ’18 – Feb. ’19 advances (rally = rally = rally). And, it peaked 1 year/360 degrees from its late-Feb. ’19 peak.
In doing so, Gold surged right to its 1684.0 – 1691.5/GCJ upside target (peaking at 1691.7/GCJ on Feb. 24) as Silver was attacking resistance at 18.89 – 19.01/SIH and the convergence of 4 of the latest 5 weekly LHRs at 18.185 – 18.97/SIH. These surges fulfilled Gold’s potential for accelerated surges in Jan. and Feb. ’20 – fulfilling the 90/10 Rule of Cycles.
They also fulfilled the final stage of a 5th wave rally – projected to peak in 1Q ’20 and then usher in a larger-magnitude correction (back toward its 4th wave of lesser degree support/target – the Nov. ’19 low near 1450.0/GCJ).
That 5th wave – from Nov. ’19 into late-Feb. ’20 – broke down into 5 smaller waves with the 5th of 5th unfolding from early-Feb. into late-Feb. and fulfilling key wave objectives included in the 1684 – 1691.5/GCJ upside target…
The XAU finally spiked above its 1 – 2 year upside target (~110.0/XAU), fulfilling the final criterion for a more significant (multi-month) peak. This coincided with the test of its latest four weekly LHRs at 107.40 – 111.83/XAU. It set its highest daily close (111.51/XAU) on Feb. 24 – stretching one day beyond expectations for an intermediate peak on Feb. 21 – the latest phase of a 16 – 19 trading-day low-low-low-high-high-(high) Cycle Progression. (The related 26 – 28 c-day cycle peaked on Feb. 24.)
In doing so, the XAU precisely fulfilled a longer-term 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. That projects an overall drop to 86.84/XAU – the 4th wave of lesser degree (downside) objective.
It then plunged right to its monthly HLS (extreme downside target for Feb. ‘20) at 90.59/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 and have ushered in a corrective period in which Gold should undergo a sharp correction to 1450.0/GC… in a relatively short period of time.
How Low Could Silver & XAU Plummet?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.