A Shot Across the Bow

0 shot

At day 9 we see that gold has been caught in a mini triangle consolidation.

GCY00 Commodity Futures Price Chart for Gold C

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 daily

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.

pay daily

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.

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