Gold, Silver & XAU Fulfill ~2-Month Targets

Gold, Silver & XAU Fulfill ~2-Month Targets;
Validate Late-Jan. Cycle Peak…
Set Stage for Sharp XAU Sell-off.

01/31/18 Weekly Re-Lay Alert:

“Gold & Silver have pulled back – with Gold twice neutralizing its daily uptrend – after both metals surged into late-Jan. and fulfilled upside objectives in time & price with Gold attacking its 1 – 2 month upside objective at 1365.8/GCG (Sept. peak) as the XAU precisely fulfilled its 1 – 2 month upside objective as well (92.57 – 93.06).

By reaching those targets, metals completed the early-Dec. buy signals and ushered in the time for a slightly longer-lasting peak (~2 – 4 weeks).

Gold is fulfilling multiple weekly & monthly cycles that peak in mid-to-late-Jan. ’18.  If it can give a daily close below 1335.5/GCJ, and turn its daily trend down, Gold & Silver would likely correct into Feb. 6 – 7, the next phase of a ~60-degree/2-month high-high-low-low-low-(low) Cycle Progression in Silver.

The XAU – after perfectly fulfilling its January upside target at 92.87 – 93.06 – quickly turned its daily & intra-month trends neutral.  (The HUI turned its weekly 21 MAC down last week, reinforcing the likelihood for a multi-week peak.)  Weekly cycles are projecting the next multi-week low in early-March, even as intervening daily cycles converge in early-Feb.”

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Gold & Gold stocks (XAU Index) fulfilled multiple cycle highs as well as 1 – 2 month upside price targets (1370/GCJ & 92.87 – 93.0600/XAU) in January.  A multi-week sell-off is expected in the XAU, driving prices lower into early-March.  That could coincide with at least one significant sell-off in the overall equity markets.  On a 1 – 2 year basis, XAU remains much weaker than Gold and could dive back towards its ultimate downside target as it drops into early-March.

See Weekly Re-Lay & INSIIDE Track for additional analysis and/or trading strategies.