It appears the stimulus negotiations were the primary driver preventing gold’s breakdown. Trump ended those talks today via a tweet, and gold should resume its previous downtrend. We continue to look for a significant bottom in the next 1 to 2-weeks.
Gold reached an intraday high of $1927 before sellers entered the market. Prices turned sharply lower after Trump’s stimulus tweet – falling back below $1900. With the stimulus news out of the way, I think gold will resume its decline into the next 6-month low. A daily close below $1880 would reinforce a breakdown.
Silver collapsed below $23.50 after Trump’s tweet, and it looks like prices are finally breaking lower form the bear flag.
Platinum also broke sharply lower after Trumps’ stimulus tweet. Prices should be dropping into the next 6-month target.
The decline in miners was delayed over stimulus rumors. Miners formed a large bearish engulfing candle – it looks like the bear flag is finally breaking lower.
Juniors formed a massive bearish engulfing candle after testing the moving average crossover near $57.00. Prices should continue to our target.
Longer-term, metals and miners are going much higher – of that, I have little doubt. The week of October 12th could host the next low in gold.
Our Gold Cycle Indicator finished at 212. I won’t expect a bottom until it drops below 100.