Gold Daily Chart Update: More Upside To Come!

Gold is making what looks like a correction, but with a bit more downside left to go next week.  Since the entire December 2016 low gold has created a choppy bullish phase that has been a real challenge to say the least. These choppy bullish moves also tell me that diagonal waves are involved, which develop in any degree “A”, “C”  in 5th waves. At this time the gold bullish phase is not finished, and that gold still has to break above the resistance price of $1375.

Bull markets don’t end when they are pointing down, they end when the charts are pointing up mostly in blow-off conditions. This blow-off condition should still happen which could push gold to $1400-$1600. At $1550 gold would run into the bottom of resistance, so gold has its short term bullish battle cut out for it.

The COT report has not been updated, but the previous week they added to their long positions in gold and silver even as they are still net short. With silver the commercials are just a bit shy of being even, which is a big change from what they used to have.

The US dollar bear market is far from finished and also has a bit more correcting to do. Also, as long as stocks are very bearish, then this alone could give gold a big boost! Some people are really hung up on the Gold/Silver ratio, which I think is irrelevant from a bygone era when silver was fixed to gold. Even though, I took a reading today, and the Gold/Silver ratio is at 81:1, which is the same ratio that happened with the 2016 bottom in gold. I will do a few more backward checks, but I don’t expect to find any Gold/Silver ratios helpful.

I use this gold futures cash chart for all my ratio calculations.

Gold stock ETFs  look like they are creeping down, but they can also still show us a good run. It is very common that gold can act much differently than gold stock ETFs can.

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