Gold & Silver Reinforce Dec. ’16 Lows
Gold & Silver Reinforce Dec. ’16 Lows;
Initial Surges Underway…
3–4 Month Advance Expected.
01/14/17 Weekly Re-Lay: Gold & Silver have rallied after reaching decisive 3–6 month downside targets in Dec., reinforcing cycles that bottomed in 4Q ’16.
Silver spiked below 16.000/SIH, completely fulfilling its projected downside target from early-Aug. while reinforcing the Gann-related range trading (moving in 2.50 point ranges) it has done for a couple years.
Gold reached its second – and more extreme – downside target, fulfilling a textbook ‘2’ or ‘B’ wave decline, retracing .786 (2DGR) of its ‘1’ or ‘A’ wave advance. That downside target came into play at 1126.2/GCG & coincided with Gold’s January (2016) high – pivotal intra-year uptrend support at 1126.3/GCG.
Gold bottomed at 1124.3/GCG & both metals then rallied into Jan. 9–13th – the latest phase of a 9-week/~60-degree high-high-high-high Cycle Progression & the midpoint of a related 18-week/120-degree high-high-high Cycle Progression. An initial high is likely at this time, even though current price action could cause an additional spike high before that takes hold.
Silver has decisive resistance – including its weekly trend point, 1-2 month peak & monthly resistance – surrounding 17.300/SIH. It would have to give a daily & weekly close above that level to elevate this rally to the next higher degree.
The XAU has surged since fulfilling expectations for a multi-month low in Dec. – initially fulfilling a 3-year high (Dec. 2010)–low (Dec. 2013)–low (Dec. 2016) Cycle Progression. That was also when an uncanny 8-Year Cycle returned.
It is running into intermediate resistance and has failed to turn its intra-month trend up (requiring a daily close above 88.42/XAU) – setting the stage for a 1–2 week pullback. A brief spike high is still possible (in the interim), creating a mid-month peak, but the XAU would need to turn its intra-month trend up in order to project any add’l gains beyond that.
3–6 month & 6–12 month traders & investors could have entered new long positions in Silver [reserved for subscribers; FUTURES TRADING INVOLVES SUBSTANTIAL RISK!].”
Gold, Silver & XAU have quickly surged since fulfilling projections for a decisive bottom in late-2016, the projected ‘II’ wave pullback in a developing bull market (see Jan. ’17 INSIIDE Track for details & related diagram on what to expected leading into 3Q 2017). Gold is expected to now undergo a 3–4 month rally followed by a 1–2 month pullback into another higher low (‘2’ of ‘III’ wave low) in mid-2017. Following that next (ascending) low, cycles turn more bullish in 3Q 2017 and are expected to spur a more convincing advance – stretching into 2018.
See 40-Year Cycle: Golden Years Reports for details on outlook into 2018 (and beyond).