Gold Continues Lower

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Monday was day 13 for the daily gold cycle and gold continued lower.

gld daily

The daily gold cycle peaked on day 2, formed a swing high, and then began its daily cycle decline. A peak on day 2 has locked in an extremely left translated daily cycle formation to this daily cycle.

Gold printed its lowest point of the cycle on day 8, with today being day 13. Gold is 5 days shy from entering its timing band for a daily cycle low. Since a daily cycle low is the lowest point following the cycle peak, gold needs to break below the day 8 low of 1206.00 to print its daily cycle low. Gold will likely accelerate lower as it prints its daily cycle low. And I think that the dollar rallying out of its intermediate cycle low will exacerbate gold’s move lower.

$$$

The dollar has been in an intermediate cycle decline. The dollar printed a lower low last Thursday. There is a chance that Thursday was only day 9, leaving the dollar another 3 – 4 weeks before printing its cycle low. But I think it is more likely that Thursday was day 34 of a stretched daily cycle. A day 34 count places the dollar deep in its timing band for a daily cycle low. A close above the lower daily cycle band will indicate that day 34 hosted a daily cycle low for the dollar and likely send gold into its final daily cycle decline.

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