Gold & Silver Nearing Secondary Peak
05/12/16 INSIIDE Track Intra-month Update
“Gold & Silver reversed lower – immediately after attacking 3–6 month upside objectives (~1305–1315.0/GC & 18.040–18.140/SI) – ushering in what could be a lengthy period of volatile congestion…Both triggered important signals on Monday (see May 9th & 11th Weekly Re-Lay Alerts for corresponding trading strategy in Gold) – increasing the potential that a top is taking hold.
This further corroborates multi-year cycles projecting 2016 to be The Golden Year, multi-month cycles projecting a 3–6 month surge following the mid-Dec. buy signals & multi-week cycles that projected the second advance to in mid-to-late-April, after an intervening correction/consolidation in March & early-April.
With Dollar cycles turning back up in early-May – and the potential for global equities to accelerate lower into late-June – at least two potential negative (deflationary) factors could amplify this volatility into mid-2016. Silver turned its daily trend down while Gold twice neutralized its daily uptrend – triggering a 1–3 day reactive bounce.
Both tested & held their daily LHRs yesterday…Gold needs a daily close below 1258.3/GCM – in the coming days – to turn its daily trend down…increase the potential for a quick, sharp drop to ~1190.0/GCM in May.
The XAU turned its daily trend down and then, in textbook fashion, entered 1–3 day reactive rebound… which appears to have peaked. That should spur a new drop into next week. [See May 12, 2016 INSIIDE Track Intra-month Update for additional details on the projected May 2016 decline in Gold & Silver.]