GOLD AND SILVER UPDATES (11:30 pm EDT)
There are several possible ways to label the current medium-term cycle in gold, but they all would overlap with two longer-term cycles that are due to bottom soon - anytime by the end of November. That bottom could be 10% - 20% off the high (that may have come in last Monday at $4381). We would also expect the decline to be 2 - 5 weeks in duration. Last Wednesday's low at $4005 was too soon. We also like to see significant bottoms inside strong reversal zones, and we need to wait at least another week for the next one. Because gold's trend seems to be quite bullish, we will be looking to buy the final steep drop into these longer-term cycle bottoms. For now, I am remaining on the sidelines of gold until we see a deeper correction.
Silver most likely started a new medium-term cycle with its low of $36.29 on July 31. Like gold, its trend has been very bullish. Prices reached a new all-time high on Oct. 17 ($54.46) (inside a reversal zone), and they have been falling from there.The end of the current medium-term cycle will likely coincide with the end of a longer-term (2 year) cycle which is due between now and February 2026. A sub-cycle correction is now in progress. If it goes to $42, I may consider buying for another rally, which may or may not make a new all-time high. Another scenario could see silver bouncing back up from support between $44 - $46 and THEN falling to the bottom of both the medium-term and 2 year cycle (20% or greater correction). That would also be a potential buy spot. For now, we are still on the sidelines of silver.
There are several possible ways to label the current medium-term cycle in gold, but they all would overlap with two longer-term cycles that are due to bottom soon - anytime by the end of November. That bottom could be 10% - 20% off the high (that may have come in last Monday at $4381). We would also expect the decline to be 2 - 5 weeks in duration. Last Wednesday's low at $4005 was too soon. We also like to see significant bottoms inside strong reversal zones, and we need to wait at least another week for the next one. Because gold's trend seems to be quite bullish, we will be looking to buy the final steep drop into these longer-term cycle bottoms. For now, I am remaining on the sidelines of gold until we see a deeper correction.
Silver most likely started a new medium-term cycle with its low of $36.29 on July 31. Like gold, its trend has been very bullish. Prices reached a new all-time high on Oct. 17 ($54.46) (inside a reversal zone), and they have been falling from there.The end of the current medium-term cycle will likely coincide with the end of a longer-term (2 year) cycle which is due between now and February 2026. A sub-cycle correction is now in progress. If it goes to $42, I may consider buying for another rally, which may or may not make a new all-time high. Another scenario could see silver bouncing back up from support between $44 - $46 and THEN falling to the bottom of both the medium-term and 2 year cycle (20% or greater correction). That would also be a potential buy spot. For now, we are still on the sidelines of silver.
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