Gold Price Exclusive Update

Our proprietary cycle indicator turned down this week, below 10%.

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 is on long term SELL signal.

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

Our ratio is on buy signal.

With our $BPGOLD falling below 10% this week, there are two charts which we want to share with you:

Chart #1 GDX – since the gold bear market ended in Dec 2015, there has only been four times which our BPGOLD dropping below 10%.

#1 – Jan 2016, rallied 150%.

#2 – Dec 2016, rallied 40% (during a two year correction)

#3 – Mar 2020, rallied 130% from the pandemic panic low.

#4 – now, after a two year correction.

How about gold prices?

Dec 2015, gold at $1050.

Dec 2016, gold at $1150.

Mar 2020, gold at $1500.

Now, gold at $1650.

Summary

Long term – on SELL signal.

Short term – on mixed signals.

Gold sector cycle is down.

$$$ We are holding trading 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.

********