The gold Death Cross on this daily chart happened around the $1305 price level. Fundamental analysts don’t have a clue about what a Death Cross is or the long-term damage that they forecast. Gold was well below the 50-day MA but now has found a bit of support with the 50-day MA. The 200-day MA is still far away before the 50-day slices into the 200-day MA. The 5 waves I show are all diagonal wave structures so the 5th wave is also a small zigzag. I’m going to stay with the same degree level even though I only had about 3-degree levels to work with. I stay with 15-degree levels as when I run out at Miniscule degree, then I know that all degree levels may need a second look.
Switch this gold chart to a weekly chart and we can see gold sitting at the 50-day MA.
Since the August bottom of $1160, gold looks like a triangle, but we should not get a triangle in a wave 1-2 positions. Any break above $1240 will work to finish off the last zigzag wave.
Gold is fooling us as silver has gone the opposite way and was on the cusp of creating a new bear market low. Last weeks COT report still have the commercials net short in gold and silver which does not get me excited about some super bullish move still to come. Three or four gold stock ETFs have already created new record lows, so it’s not just one thing that I look at.
Commercial hedgers are short in palladium, platinum, copper, and aluminum, which is also very bearish in the longer term.