Gold Cycle Analysis On February 15th Gold Price Drop

Latest update (April 4th)Gold & Silver Prices Drop Today – What To Make Out Of It?

Well if there was any doubt left that [dollar] gold has decoupled from the Equity markets and risk in general, we got that confirmation on Friday.  As the Equity markets move closer to a 4 Year Cycle Top, this is a positive development for the longer term gold outlook.  Obviously that doesn’t help us any in the short term as a “seemingly” improving economy is considered a negative for gold.

gold_cycle_analysis_feb_2013

On the Daily Cycle, the Cycle failure I discussed during the week did end up proving to be a negative development.  Friday’s drop was discouraging because it was more than just a stop-run of positions clustered around $1,626.  Friday was a sustained and consistent sell-off on high volume which did not end in a bullish buying reversal.  It also took gold outside of a well-developed trading range where there is little support.  For these reasons I fear that the selling is likely not over.

Gold_Daily_Chart_15_February_2013

Looking at the Daily chart above, obviously it’s oversold in the short term and should bounce out of a Bollinger Band crash.  But my concern is that the Cycle is only on Day 15, so it conceivably has another 5-8 days before a Cycle Low.

This is an excerpt from this weekends’s premium update published on Saturday (2.16)  focusing on gold from the “The Financial Tap”. They are dedicated to helping people grow into successful investors by providing cycle research on multiple markets delivered twice weekly, as well as real time trade alerts to profit from market inefficiencies. They offer a FREE 15-day trial where you’ll receive complete access to the entire site. Coupon code (ZEN) saves you 15%.

Receive these articles per e-mail

Subscribe for the free weekly newsletter and receive 3 papers about physical precious metals investing