Gold Price Exclusive Update

Our proprietary cycle indicator remains down.

To public readers of our updates, our cycle indicator is one of the most effective timing tool for traders and investors. It is not perfect, because periodically the market can be more volatile and can result in short term whipsaws. But overall, the cycle indicator provides us with a clear direction how we should be speculating.

Investors

During a major buy signal, investors can accumulate positions by cost averaging at cycle bottoms, ideally when prices are at or near the daily 200ema.

During a major sell signal, investors should be hedged or in cash.

Traders

Simply cost average in at cycle bottoms when prices are at or near the daily 200ema; and cost average out at cycle tops when prices are above the daily 50ema.

Gold sector remains on long-term buy at the end of September.

GLD is on short-term sell signal.

GDX is on short-term sell signal.

XGD.to is on short-term sell signal.

GDXJ is on short-term sell signal.

Analysis

Data favors overall lower gold prices.

Our ratio is on a sell signal.

USD – broke out and up from a bottoming pattern.

Price dropped firmly below the breakout point thus rendering a false breakout.

Late buyers are now trapped and liquidation could be a lengthy process.

A breakdown from the flag can only be reversed upon a break above the apex at 1950.

Summary

Long-term – on major buy signal.

Short-term – on sell signals.

Gold sector cycle is down, a correction is in progress.

*** We are hedged and net short, locking in 130% profit on our core position, and 20% on our short term positions.

Disclosure

We do not offer predictions or forecasts for the markets. What you see here is our simple trading model which provides us the signals and set ups to be either long, short, or in cash at any given time. Entry points and stops are provided in real time to subscribers, therefore, this update may not reflect our current positions in the markets. Trade at your own discretion.