The gold price trends have been sloppy since December 2016. That sloppy behavior is evidence of a three-wave move, a correction. Therefore, the current increase in gold prices may not last long. The break above $1357 eliminates the near term triangle possibility and indicates the rise since December 2016 is a large ‘B’ wave. ‘B’ waves tend to be sucker waves that are sloppy and overlapping and the trend for the past year fits that description. ...
Coming into the year, Gold prices were dropping like a rock. This was on the back of the surge being seen in the U.S. Dollar as the ‘Trump Trade’ got further priced-through capital markets. But as that Dollar strength viciously turned into aggressive weakness in the first quarter of the year, Gold prices began to lift-higher. This lasted all the way into June, where a double top around the $1,296 level finally initiated some element of resistance. This is a level that remains resistant, as we saw ...
After penetrating the zone of resistance that had developed last summer from $1,350-$1,375, short-term bearish price action has begun to show. Even with North Korea conducting another missile test and while the U.S. Dollar remained relatively bearish against most currencies, sellers controlled short-term price action in Gold, driving prices down to a key support zone. If we take the major move of last year’s high down the December, pre-rate ...
Gold prices have made little net progress over the past four months. Little net progress is typical of a corrective consolidative move. Gold prices, as of today, are still less than a 38% retracement of the December 2016 to February 2017 up trend. A shallow retracement of that nature suggests the longer term bull trend from December is not quite over. Using Elliott Wave theory as a model, the sideways correction that began February 27 is ...
U.S. Non-Farm Payrolls report on Friday showed a gain of only 98K but the underlying metrics were strong with the headline unemployment rate falling to 4.5%, its lowest reading since mid-2007. The under-employment rate (U6) also saw an outsized downtick to the tune of 8.9% from 9.2%. Gold spiked on the release only to reverse sharply early in the US session. Heading into next week, the trade remains vulnerable sub-1258 with interim support ...
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