Two prevailing cycles in gold create an interesting situation for this summer: both the 110-day cycle and the 211-day cycle are now bottoming in the July-August period.

The following two charts show the gold price compared to the prevailing cycles, with trend reversals highlighted in red according to the cycle timing.

Gold 110 Days Cycle

Gold 211 Days Cycle

Technical Situation

It is interesting to point out that both cycles are harmonically connected by the factor 2 and 1/2 respectively.

If we use the dominat cycle length of 110 and use half of the cycle length to fine-tune a RSI indicator on the price chart, the technical reading of that indicator would confirm a low.

Please keep in mind that silver and gold prices are highly dependent on economic conditions and monetary policy. So the cycles do not show the whole picture. Please make sure you do your own due diligence before taking any action.

Have a nice week ahead!

Regards,
Lars

Share

Disclaimer:

The publisher does not warrant the accuracy or completeness of the information provided on this site. All statements and statements contained herein are the sole opinion of the author.

Lars von Thienen / WhenToTrade is a publisher of scientific cycle analysis results for global markets and is not an investment advisor. We do not provide personalized or individualized investment advice or information tailored to the needs of any particular recipient.

No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned.  

Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable.  They are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur.

Neither the publisher, the author nor any of its affiliates accepts any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein.