This morning gold is producing a small double top with a few small spikes before gold started to make another correction. If this is the big one already then there is no way that gold should crash very deep before it lifts off for another leg up. That’s the song and dance we get from all the bullish gold investors. Is this the start of a 1-2, 1-2 count? In a wave 3 extension, there are only about 3 sets of 1-2 waves that will happen, so we need one more, smaller 1-2 wave set in order for this trend to keep going.
Any move down that retraces below that $1180 price level will kill any idea of this gold rally to be into a bullish phase. This gold rally has a good chance of being a fake start, and if the markets are good enough to confirm this, then we still have wave 3-4-5 to complete.
Platinum made the exact same move as gold, but platinum crashed to new record lows already, with about the exact same wave count as in gold. The difference since the 2016 bottom is that platinum was far lower and more sideways in the last year and 10 months.
Silver is also reacting but in a subdued fashion as well. Silver only has to fall below $13 and it will have resumed its bearish phase. It’s more important to watch silver as it walks to a different drummer than what gold is walking to.
The markets have been tumbling this week, and when stocks rally again, gold investors will run back into stocks as fast as their little fingers allow them to click, as fear moves never last that long.