Gold, Silver & XAU – Overall Surges into 2021 Projected! Enter New Bullish Phases
05/16/20 Weekly Re-Lay: “Gold & Silver rallied late-week, reinforcing the lows set during the week of May 4 – 8 – the latest phase of a 7-week high-high-low-(low) Cycle Progression (that projects a future low for late-June, particularly in Silver).
Both metals bottomed on May 4 – 6 without turning their daily or intra-month trends down, ushering in the time for new 1 – 3 week rallies… The correction into early-May was shallower than expected, showing more near-term strength than originally perceived.
That (positive) daily trend failure ushered in the potential for a retest and/or rally above the mid-April highs. That became more likely when Gold & Silver exceeded their May 8/11 highs during Thursday’s session (after the inversely-correlated daily 21 MARCs began a 5-day dive on May 12) – reinforcing some near-term underlying strength.
At the same time, Silver was exceeding its weekly 21 Low MAC (15.935/SIN) and confirming short-term strength – signaling a rally to extreme levels. That spurred a quick surge with Silver reaching a pair of weekly LHRs(extreme upside targets for last week) at 17.11 – 17.165/SIN. It is likely to spike higher before an intermediate top takes hold.
Gold could do the same – and spike above its mid-April peak… Gold entered its next bullish phase – expected to begin on May 13 (the same time that Silver’s daily 21 MARC began to plunge… becoming a bullish factor on May 14 – 20) – and turned its intra-month trend up. These factors projected a minimum rally into mid-month that could easily carry over into the coming week.
The XAU resumed its uptrend in sync with the stock market recovery of May 14/15, after failing to elevate the recent 3 – 5 day peak to anything more significant. It sold off into mid-week and twice neutralized its daily uptrend but would not turn that down until a daily close below 117.11/XAU.
Instead, it spiked down to its ascending daily 21 High MAC and immediately reversed higher on Thursday – signaling the completion of that latest correction. As stated last week, the XAU is tracking with stocks…
Recent action showed the XAU is still in the 5th wave (since May 1) of a short-term 5-wave advance from the mid-March low. 110.37 is the 4th wave of lesser degree support for that wave structure.
On a broader basis, the XAU remains in a 1 – 2 year uptrend from the Sept. ’18 (secondary) low – expected to last into late-2020 or early-2021 with the next major objective at ~135 – 140/XAU.”
Gold, Silver & XAU Index (Gold/Silver Index) confirming new bull market after bottoming in perfect sync with multi-month cycle lows on March 16 – 20. That was/is projected to spur new advances into late-2020 and likely into May 2021 with Silver gains likely exceeding Gold gains during that period, as Silver & metals stocks forecast to track closer with (bullish) overall stock market.
Near-term cycles turned back up in early-May.
How High Could Gold/Silver Stocks Surge in 2020/2021?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.