Gold Cycles Short term Our last update discussed that the short term cycle window was closed but the weakness in gold was still suspect. Since then new lows have been made and the Thanksgiving Holiday and next cycle turn of Nov 25th is right in line with the holiday week. A move higher to next week will suggest that gold will move lower after that into the week of Dec 7th where an IMPORTANT LARGER CYCLE exists that could …..and I say “could’ provide the gold low. The other longer term cycle would be March 2016 (and still the preferred cycle turn). We have closed daily below the 1072 key reversal point this week but THE FRIDAY CLOSE WILL BE THE MOST IMPORTANT. A close below 1072 will favor a low to be put in place next week. Then a short term bounce back towards 1105-1125 should be in order. However, IF WE CLOSE ABOVE 1088 today, then it’s possible we can still head for a high next week near 1095-1112. Odds favor a bounce back to develop from here but we must first close above 1085 and then 1095 in order to get more confirmation that the cycle turn is in play. The potential for lower prices in December towards 1030-1050 will be in play on a Friday close below 1072.
Gold Short term Gold remains weak and needs a close above 1094-1095 to relieve short term pressure. It is trying to hold the 1072-1080 area on the weekly close. We closed below 1072 on Wednesday, but it is possible (like we said on Twitter last night) that gold was making the lows for the week. Odds favor a test of 1088-1095 is taking place and then we will see if gold wants to move higher. Support will be 1072-1076 going into Friday Morning. A close below 1072 keeps things bearish on Friday.
