Gold & Silver on Track for More Upside

10/03/15 Weekly Re-Lay: “Gold adhered closely to daily cycles, fulfilling projections for a low on Sept. 10/11^th and a subsequent high on Sept. 24^th (which should act as a precursor to a subsequent high on ~Oct. 23/26^th).  That was expected to usher in a pullback & some consolidation before a new surge in Oct.

As detailed on Sept. 16^th, Gold & Silver were beginning to mimic what took place in Nov.–Jan. 2015 and were expected to see an overall advance into late-Oct.  This came after Silver spiked to a new low in late-Aug. – similar to what it did in early-Dec. – even as Gold set higher lows.  That divergent low reaffirmed Gold’s bullish outlook.

Since that update, the expectation has been for a repeat (or something similar) of the Jan. 2^nd–Jan. 22/23^rd surge… after Gold had completed a second rally, from Sept. 11^thinto Sept. 24^th.  Gold fulfilled projections for a rally into Sept. 24^th and reversed its daily trend up in the process (a lagging indicator that then triggers a multi-day reaction lower). Gold provided a textbook pullback, twice neutralizing its daily uptrend before reversing higher on Oct. 2^nd.

That also perpetuated a 13–14 trading day high-low-(low) Cycle Progression that corroborated the daily trend pattern, both projecting a pullback low on Oct. 1^st, + or – 1 trading day.  Gold bottomed on Oct. 2^nd… paralleling the previous, Jan. 2^nd low.

Silver reinforced that with a 13 trading-day low (Aug. 26)–low (Sept. 15)–low (Oct. 2^nd) Cycle Progression and with 1–2 week support at 14.345–14.425/SIZ.  It bottomed onOct. 2^nd at 14.360/SIZ.

All of this increases the potential for a strong rally from Oct. 1^st/2^nd into Oct. 23//26^th, similar to the Jan. 2^nd–Jan. 22/23^rd surge of early-2015.

The XAU was expected to corroborate the potential for a Gold & Silver surge in October, after setting a divergent low on Sept. 7–11^th while completing a 16–17 week high-high-(low) Cycle Progression (since Jan. ’15).

That mimicked a similar 16–17 week high-high-(low) Cycle Progression during the XAU’s previous decline (Mar.–Nov. ’14) and completed back-to-back declines of 33–34 weeks each.

The XAU corroborated that cycle low with a geometric ~45-week low-low-(low) Cycle Progression – and a total 90-week low-low cycle from its Dec. 2013 low – both of which came into play on Sept. 7–11, 2015.

Sept. 7–11, 2015 was also a precise, 4-year decline from the XAU’s Sept. 5–9, 2011 peak… a decline that created a corresponding 2-year/~720-degree high-high-(low) Cycle Progression… while completing a ~3-year cycle/decline from its Sept. ’12 peak.

Daily cycles and the daily 21 MAC reinforced that analysis and set the stage for an early-Oct. rally. 

The XAU confirmed that scenario by triggering an outside-day/2 Close Reversal buy signal on Sept. 30^th.  It needs a daily close 49.04/ XAU to turn the daily trend up and confirm that.

Platinum continued lower – still reeling from Volkswagen’s revelations – and remains on track for an overall decline into 4Q 2015, the latest phase of a 7-year low-low-low Cycle Progression. If/when Platinum signals a bottom, it could provide an extra boost to Gold…

Copper remains on track for a Major low in 2015, most likely in Nov. or Dec.  It’s weekly trend pattern projects a retest of the lows, which is still yet to materialize (although Copper came close).  A 1–2 week rally is possible in the interim… 

Gold & Silver provided the intervening pullback, expected between the Sept. 24^th cycle high and the onset of a new advance (that should carry them higher into Oct. 23/26^th). 

In synch with daily cycles and the daily trend pattern in Gold, both metals set low closes on Oct. 1^st and then spiked lower on Oct. 2^nd, before reversing higher and initiating the expected advance.  The intra-month trends need to turn up (Oct. 6^th is earliest that can happen) in order to confirm that scenario.”

Gold & Silver are increasing/reinforcing the parallels to Nov. ’14–Jan. ’15 and are still on track to stretch the current rally into Oct. 12–16^th or Oct. 19–23^rd.  If this ‘analogy’ continues (after Oct.), Gold could see a sharp, 7–8 week decline (as it did in Feb. & March) and set another low 4–4.5 months (19 weeks) after its July ’15 low (as it did in March, 19 weeks after its Nov. ’14 low).

This would coincide with major cycle lows – in many metals (particularly Platinum & Copper) – in late-2015.  All of this is setting the stage for ongoing projections that 2016 will beThe Golden Year and begin with the biggest surge in several years.  Gold’s 4-Shadow signal continues to corroborate that potential.