Gold & Silver Surges: Multi-Week Buy Signal Projects Surge into Feb 21 – 28.
02/05/22 Weekly Re-Lay – “Gold & Silver remain on track for a rally into late-Feb… Gold & Silver dropped sharply in late-Jan after peaking a few days early and in the week after Silver tested and held its weekly LHR (24.74/SIH). That has not negated the potential for another rally into higher highs on Feb 21 – 28 – the next phase of Gold’s ~7-week low-low-high-high-(high) Cycle Progression that timed the early-Jan peak.
A top at that time would also fulfill the next phase of an overriding 17 – 18 month high (Aug/Sept ’17) – high (Feb ’19) – high (Aug ’20) – high (Jan/Feb ’22) Cycle Progression… Both metals tested and held their weekly HLS levels (extreme downside targets for last week) while correcting in late-Jan. Just as important, they neutralized their daily uptrends twice but did not turn those trends down (and would not do so until daily closes below 1780.6/GCJ and 22.15/SIH).
That action, combined with the weekly extremes being tested, spurred an initial rally but more upside is needed to signal that a 2 – 4 week low is in place. One of the first corroborating factors would be the intra-month trends turning up.
The daily 21 MACs should also help clarify if/when a bottom is signaled. Currently, that indicator would not turn positive until daily closes above [reserved for subscribers]… However, the declining (inversely-correlated) daily 21 MARCs are poised to help the direction of the daily 21 MACs turn up in the coming day(s).
Similarly, the inversely-correlated weekly 21 MARCs will drop over the next three weeks – corroborating the potential for a new intermediate advance. As long as Gold & Silver do not suffer any additional downside, that 21 MARC movement should help turn the corresponding weekly 21 MACs back up in 2 – 3 weeks.
On a broader basis, both metals remain locked inside 2-month trading ranges that are part of ~4-month trading ranges inside of over-arching 6 – 7 month trading ranges that have been in effect since Gold & Silver set secondary highs in May ’21 (as the XAU was spiking to a divergent higher peak).
That followed Gold & Silver’s Aug ’20 peaks (which Silver retested in Feb ’21), which have remained intact ever since – even as Gold has ricocheted between range-trading parameters.
All of this action continues to reflect a 1 – 2 year corrective period that was expected to set a 3 – 6 month (or longer) bottom in late-Sept/early-Oct ’21 and then rally. That is expected to continue.
Those late-Sept ’21 lows need to remain in force if Gold & Silver are to maintain the likelihood for additional gains during this overall rebound (from then). One positive factor about the last 6 – 7 months is that Gold has continued to set a sequence of higher lows, with the late-Jan low (as long as it holds) timing the 4th in that sequence.
If Gold can now exceed its Jan 25 high (and then its mid-Nov ’21 high), it would confirm a developing bullish wave structure…
One of the first new signs of strength would be the intra-month trends turning up. It would take daily closes above 1812/GCJ & 23.06/SIH to do so. If that occurs in Gold on Feb 7, it could trigger a domino-effect of progressive bullish signals – with the daily 21 MAC turning back up, a subsequent daily close above the daily 21 High MAC and the daily trend turning back up…
The XAU & HUI remain in congestion – stuck in 1 – 2 month, 2 – 4 month & 4 – 6 month trading ranges after setting 3 – 6 month lows in sync with weekly & monthly cycle lows in late-Sept ‘21. They are also expected to set higher highs in late-Feb/early-Mar ’22 but need some signs of short-term strength in the interim.
Daily closes above 133.00/XAU & 260.0/HUI would turn the 2 – 4 week trends positive. The intra-month trends should also turn up (w/daily closes above 128.20/XAU & 252.68/HUI) to confirm. The daily 21 (& 40) MACs are poised to turn up on Feb 7 or 8, based on declining daily 21 MARCs.
Copper remains in what is likely to be the final phase(s) of a ~2-year bull market but could still see an additional spike high before the end of 1Q ’22 (that could stretch into March ’22). If that is to remain the case, Copper should not give a weekly close below 4.1160/HGH.
Copper’s daily trend action is positive and a daily close above 4.5090/HGH would turn the intra-month trend up and project upside into mid-Feb.
Platinum & Palladium remain strong and are reinforcing bullish signals from mid-Dec – that could extend recent gains into mid-Feb. As explained in recent months, these could be 6 – 12 month or even 1 – 2 year lows in these metals.”
Gold & Silver remain on track for an overall surge into Feb 21 – 28 and to at least 1913 – 1920/GC. Since that would only match previous rallies, and Gold is perceived to be in a higher magnitude advance, it should ultimately exceed 1920/GC and validate the overall outlook for 2022. Short-term cycles & indicators triggered an intervening low and buy signal in late-Jan and Gold is poised to trigger a ‘domino-effect’ of bullish signals in the coming days – ushering in the (likely) accelerated phase of its 4 – 5 month advance.
Platinum & Palladium fulfilled major downside objectives in Dec ‘21 and are signaling 6 – 12 month bottoms and the onset of new multi-month advances… as Copper is fulfilling multi-year upside objectives (and could peak in 1Q ’22).
At the same time, stock market cycles and indicators are projecting another sharp sell-off – reinforcing expectations for a tumultuous period in Feb ’22.
What is Significance of Feb 21 – 25 Cycles in Gold… and Why Should Metals Spike Up into That Time Frame?
Will Gold Reach/Exceed 1920/GC by/in Late-Feb ’22? What about cycles in April & Sept ’22??
Will Stock Market Sell-off Coincide with Gold/Silver Surge?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.