Gold Update. Where next?!

This is a summary of the initial overview in Gold, outlining the current juncture, so you will get an idea of what Intelligent Investing’s new “Metals, Miners, and Forex” service is all about. After you sign up for only $59 per month, which you can do here, you will get initial overviews on Gold Mining, Canadian Dollar Futures, Silver, and the U.S. Dollar, all recently published (all with very compelling set-ups). You will then receive similar, upcoming overviews for Silver Mining, Platinum, Australian Dollar, British Pound, and the Japanese Yen, among others. And you will of course start to receive daily and weekly updates straight to your inbox.

Similar to Silver’s count, Gold counts well as a complex correction from the 2011 high, with some neat relationships, channels, and an ending diagonal to finish the decline into the December 2015 low. From there, a clearly-impulsive advance ensued into July of 2016 (also an 8-month rise, in this case from December), and this rise retraced virtually all of the ending diagonal (C) wave before stalling. Chart-wise, Gold also has the look of a head-and-shoulder bottom formation, and the current, impulsive rise from August is still underway. Meanwhile, momentum has turned solidly higher with that impulse.

The Weekly chart depicts ideal subdivisions in that initial move down from 2011 as a clear, (A)(B)- triangle (C), and note the green channel, drawn across the 2011 high and the E of (B)-wave high–besides the cluster of projections and the picture-perfect subdivisions throughout all of the decline from 2011, note how the ending diagonal respected that (green) channel all the way down and bottomed right on it.

As far as alternate counts go, a more complex correction in Gold from the 2011 high may be involved, one way or the other, but in any case, after some consolidation of the rise from August, further strength is still expected toward 1400 anyways, with higher potential closer to 1500. From a near-term perspective, note how momentum has diverged against this recent high. From many standpoints then, it makes sense that a dip back toward 1277 or so is underway, or, it’s coming soon. Another high after that should finish the subdivisions in five up from August and it may be that a series of down/up sequences in small-degree fourths and fifths will occur, but either way, a larger, wave-2 decline should provide a good buying opportunity or two, so I will keep you posted in the coming weeks as the pattern progresses.


Michael Boysen

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