Take Gold Profits Now

Retirement

Photocredit: © 2018 Bloomberg Finance LP

© 2018 Bloomberg Finance LP

Gold has had a good run, but it appears to be set up for a decline. This rally has had an effect on sentiment, turning bears into bulls. Judging by the opinion polls, when optimism was this high in the past, gold had a very high probability of being lower one to three months later. The rising bullion price has also affected trading. Hedgers are holding 40% of open interest net short, a condition that has led to losses over the next three months two-thirds of the time.

Price action adds to the evidence. On Friday, price popped through the $1345 resistance intraday but failed to hold the gain, closing at the low of the day, a swing of about $10. In fact, the gold price is at an overhead resistance level as the weekly and the monthly gold price cycles are topping together. This alone makes it quite doubtful that gold will break out to the upside. I add that the U.S. dollar cycle has bottomed.

The elements of a top are developing. Reduce gold holdings.

Chart 1: Gold at Resistance Levels

Gold is up against resistance.

Cycles Research Investments LLC

Chart 2: Gold Weekly Cycle

The weekly cycle is cresting.

Cycles Research Investments LLC

Chart 3: Gold Monthly Cycle

The monthly cycle is also topping.

Cycles Research Investments LLC

Products You May Like

Articles You May Like

Canceled flights, higher fares, older jets — air travel takes a hit from Boeing 737 Max grounding
Here’s What You Need To Know To Survive NYC’s Summer Rental Market
How Wealth Accumulators Can Use Trusts To Avoid State Income Tax
BlackRock’s Fink: CEOs tell me they’re pulling their supply chains out of China
Newly Discovered Cellular Pathway May Mean New Approach For How We Treat Alzheimer’s and Cancer

Leave a Reply

Your email address will not be published. Required fields are marked *