Gold, Silver & XAU Resume Rallies; Brief Pullback Could Trigger April Advance.
03/28/20 Weekly Re-Lay: “Gold & Silver rallied sharply after Gold fulfilled its primary downside objective – a sharp correction back to ~1450.0/GC (see March ’20 INSIIDE Track). Gold plummeted to 1450.9/GCJ without turning its weekly trend down – fulfilling the primary downside price projection for this decline and projecting a rally back to the highs.
In doing so, it perfectly fulfilled the primary downside wave objective – dropping right to (and holding) its 4th wave of lesser degree, the Nov. ’19 low. From a wave perspective, as well as from the weekly trend perspective, that projects a rally to new highs. That remains the price objective, though it could take more time to fulfill that.
In the interim, it would not be surprising to see a pullback to 1570 – 1580/GCM.
Silver remains divergent from Gold but has been rallying as the overall stock market has recovered. It turned its daily trend up – while attacking its descending daily 21 Low MAC – both factors that could spur a reactive 2 – 3 day sell-off with initial support now at 13.70/SIK.
Longer-term traders and investors could have begun buying Silver or related stocks around 12.00/SIK in mid-March. Risk a daily close below [reserved for subscribers]…
Silver turned its daily trend up as it was surging into mid-week, subsequently projecting a reactive multi-day pullback. That could stretch into month-end before Silver would be poised for a new rally.
The XAU rallied after fulfilling the downside potential for a sharp drop into Mar. 16 – the latest phase of a ~60-degree/~2-month low (Sept. 13/16) – low (Nov. 12) – low (Jan. 14) – (low) Cycle Progression. At that time, it tested its monthly HLS (extreme downside target) and spiked down to 6 – 12 month support – attacking the lower end of its ~4-year trading range.
That should create at least a 2 – 4 week bottom… and potentially longer… That triggered analysis for an initial 2 – 3 day sell-off with key support near 77.50/XAU. It is already fulfilling that, dropping from 93.26 to 80.78/XAU over a two-day period. This correction is likely to last into March 31 before the Gold/Silver Index would be positioned for another rally…”
Gold, Silver & gold stocks (XAU Index) rallying after fulfilling downside objectives with Gold plunging to 1450.0/GC target as Silver & XAU fulfill decisive multi-month cycle lows on March 12 – 16. Next phase of 2020/2021 outlook underway.
Will Brief Pullback Lead to New Surge in April?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.