Gold Price Update

Gold sector cycle is up.

Our proprietary cycle indicator is now up.

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 major buy signal since early 2016.

Major signals can last for months and years and are more suitable for long-term investors.

COT data N/A this week.

From observing COT data, we can see clearly how speculative activity is established during a bull and bear market, so that we can be aggressive in positioning accordingly.

Currently, a trend has not been established.

Speculative sentiment according to open interests however, is supportive for overall higher prices.

GLD is on short-term buy signal.

GDX is on short-term buy signal.

XGD.to is on short-term buy signal.

GDXJ is on short-term buy signal.

A breakout is confirmed this week, suggesting that the multi month correction is now complete.

Summary

Long-term – on major buy signal.

Short-term – on buy signals.

Gold sector cycle is up.

We are holding long until the next cycle top.

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.

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