Gold and valuable metals have rallied sharply since their March liquidation lows. Worth momentum and bullish sentiment are actually at extremes. We
Gold and valuable metals have rallied sharply since their March liquidation lows. Worth momentum and bullish sentiment are actually at extremes. We consider gold might type a brief peak any day and start a pointy multi-week correction.
The gold mining ETF (GDX) typically leads gold costs into important turning factors (intermediate tops and bottoms). The present development in GDX is slowing, and we’re starting to see indicators of exhaustion.
GDX UPDATE: Final Thursday, GDX closed beneath its current worth hole, inferring development exhaustion. Yesterday’s black candle is one other potential ominous signal. Any shut beneath Wednesday’s low ($44.02), would set up a short-term promote sign.
GOLD NEAR-TERM PRICE LEVELS
Any shut again beneath $2000 within the coming days would assist a spike excessive and momentary peak in gold. If a high is confirmed, we see the potential for a pointy correction to $1750 with a 30% probability of revisiting $1670.
Our intermediate Gold Cycle Indicator reached a max overbought studying for 450. The following purchase sign received’t arrive till it drops again into minimal bottoming. In March, it reached an ideal purchase rating of zero.
I see the potential for elevated volatility this week, particularly surrounding Friday’s employment report – excessive warning is warranted.
For a have a look at all of in the present day’s financial occasions, try our financial calendar.
AG Thorson is a registered CMT and knowledgeable in technical evaluation. He believes we’re within the remaining levels of a worldwide debt super-cycle. For extra data, please go to right here.