Price Of Gold Exclusive Update

Our proprietary cycle indicator is 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.

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 sell signal.

Analysis

COT data on gold speculation is at a new high.

Short term volatility can be very sharp, stay focused on the big picture.

Stay focused on the long-term.

The silver:gold ratio confirmed a breakout this week, ending a three year downtrend and under performance.

USD is at a new high this week. Precious metals have been rallying alongside the dollar since June, and that is extremely positive for the metals.

Summary

Long-term – on major buy signal.

Short-term – on mixed signals.

Gold sector cycle is up.

COT data is alarming, but as long as speculation continues to increase, there is no telling when liquidation will begin.

Stay focused on the long term and stay the course.

New money should wait for a correction.

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.

We also provide coverage to the major indexes and oil sector.