Gold: Update
Last week's trading saw the Gold market forming its low in Monday's session, here doing so with the tag of the 1841.10 figure. From there, a firm push higher was seen into mid-week, with the metal hitting a Wednesday peak of 1891.30 - before consolidating the action into the weekly close.
Gold Market Update
For an update on the gold market, in my last article (posted 5/9/21), I mentioned that the next short-term peak was due to materialize for gold, coming from the smallest-tracked wave, the 10-day cycle:
From my 5/9/21 article:
"In terms of price, gold is likely to see a quick drop back to the 10-day moving average in the days ahead, as the next short-term bottom forms."
As mentioned, the 10-day moving average was noted as the price magnet to the recent downward phase of the 10-day cycle, which was easily met, dropping right back to this 10-day average into the 5/13/21 trough. In our market report, we noted that the odds favored that decline to end up as countertrend, giving way to higher highs on the next swing up - which we have obviously seen.
With the above said and noted, at minimum, another short-term dip is due to materialize, coming from this same 10-day cycle. And, as before, the 10-day moving average would be a normal price magnet, a move which may - or may not - end up as countertrend, due to the position of the larger 34 and 72-day cycles.
Gold's 3-6 Week View
As mentioned in past articles, the upward phase of the 34 and 72-day cycles was seen as being in force, ideally pushing higher into the mid-May timeframe or later. Here is the smaller of the two waves, the 34-day component:
In terms of price, as mentioned over the past month or so, the higher 154-day moving average was noted as the ideal upside magnet to price - which was obviously hit with the action that followed. This moving average was also noted as a resistance level, which has recently been taken out to the upside, thus putting the same as first support to any short-term decline.
Stepping back then, the next swing top - and thus correction phase - is expected to come from the smaller 34-day wave, and which is due to materialize at anytime, with this cycle next projected to trough in the month of June. In terms of price, we would be looking for the 34-day moving average to act as the magnet to the next decline phase of this wave, which has yet to be confirmed to be in force - with the exact reversal level noted in our thrice-weekly Gold Wave Trader report.
Gold Prices, Mid-Term
For the mid-term picture, as mentioned in past articles, we were awaiting confirmation of a turn higher with one of our largest-tracked waves, the 310-day cycle:
With the action seen in past weeks, we now have our best indication/confirmation of a turn higher with our 310-day component, with the current upward phase of this wave favored to remain intact into what looks to be early next year - but with the normal up-and-down movements in-between.
With the above said and noted, the probabilities favor the next correction phase of the smaller 34-day cycle to end up as countertrend, giving way to higher highs in the coming months, as the upward phase of the larger 310-day cycle progresses.
Jim Curry |
