At day 9 we see that gold has been caught in a mini triangle consolidation.
Waiting on a break of the mini triangle can indicate gold’s intentions, it can also lead to a false break out. I still default to the two lines we discussed last week.
Gold formed a 35 day, left translated daily cycle low on 12/04. Four days later gold peaked at 1267.7. A break below the previous low of 1211.7 indicates a continuation of the intermediate cycle decline. At this point a break above 1267.7 shifts the odds to this daily cycle forming in a right translated fashion. And a right translated daily cycle would indicate that this is a new intermediate cycle.
Palladium may be giving gold a waring shot across the bow.
Palladium got hammered on Tuesday and dropped a whopping 2.45%. In the process, palladium broke below the previous daily low today printing a failed daily cycle.
So is palladium giving gold a warning shot across the bow by leading gold into an intermediate cycle decline? Or at 18 days, is palladium getting ready to print a daily cycle low?
Perhaps the dollar may give us a hint.
The dollar printed a 15 day, left translated daily cycle low last Wednesday. The dollar peaked on Friday and formed a swing low on Monday. Tuesday saw the dollar spike higher before reversing and closing lower. The dollar may have set its declining cycle trend line today. A break below the blue line signals the the dollar has entered into its daily cycle decline — which should be good for metals.