Gold Intraday Gyrations Update

Since mid January gold still has not pushed higher, but has gone sideways with some wild counter rally moves.  This alone suggests that gold is still in a bigger bullish phase.  In the last few days, we had a move that could fit better into a potential 4th wave, but could still see a rally before pushing lower one more time. A gold push below $1300 can still happen, but the bullish moves of the US dollar have kept gold from breaking out. I’m getting close to spending all my degree levels with only one degree left, and when that starts to happen, I’m forced to review all my Minor degrees and higher wave counts.

In the last few months the pattern has been so choppy that it still fits into a bigger corrective pattern. Eventually that $1375 price level should get completely retraced, but any vertical type of a move, could set gold up for another big correction. As much as the gold pattern looks like the footsteps of a drunk in the snow, gold can become the hedge for safe-haven buying.

Gold seems to be reacting a bit after the end of a month, so it may take until the first week in March before gold is ready to turn again. At the $1304 price level, gold would be finishing a H&S pattern which can produce a double bottom base for gold.

There may be more short term downside moves in gold, but in the longer term I’m still bullish, as I have no intention of selling any of my gold stock/ETFs.

When the gold charts are pointing down, investors are in a panic to sell, but in the real world smart money is buying bullion. It’s the dumb money that is running to the gold dealers to sell gold and silver to buy Bitcoins. In the future Bitcoins may go from zero and right back to zero, but gold will still be here. Gold and silver have served as a medium of exchange for thousands of years, which no other medium of exchange can ever claim.

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