Gold Price Exclusive Update

Our proprietary cycle indicator is 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 July.

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 sell signal.

GLD is now testing the breakout point.

Next major resistance is at 500.

Next major resistance at 50.

Next major resistance at 90.

Objectively looking at gold prices: a range is now established between the recent high near 2100, and support at 1900.

The short-term sharp swings inside this range can whipsaw most traders, therefore, it’s wise not to throw more capital into the sector until there is a clear direction for the intermediate time frame.

Much will depend on the USD’s current consolidation outcome.

A breakout will launch a recovery rally which will pressure the metals.

A break down will send gold prices to a new high.

Summary

Long-term – on major buy signal.

Short-term – on sell signals.

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

*** We are now hedged, 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.