Two Possibilities for Gold …

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Gold printed its lowest point on October 7th, following the day 3 peak. Since then it has been trading in a narrow range, resisting the rallying dollar.

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October 7th was day 25 for the daily gold cycle. That placed gold in its timing band for printing a daily cycle low. Option 1 for gold is to break above the October 7th high of 1267.60 and form a daily swing low to signal a new daily cycle.

There is a second option for gold. Gold could break lower, printing a lower low. If gold were to break lower, that would make Tuesday day 32 for the daily gold cycle. That would place gold very late in its timing band for a daily cycle low. So a break lower would likely be one final flush, which should then be recovered quickly after gold prints its impending daily cycle low.

So either option should be bullish for gold.

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