Although gold prices have been moving lower since the beginning of October, the consolidation formation on the weekly chart that we have been monitoring since early September continues to track the bullish scenario that we outlined at the time, favoring an eventual resumption of the long-term uptrend. The short-term decline has returned to congestion support in the 1,660 area where the secular bull market will face its next important test.
With respect to intermediate-term cycle analysis, prices have declined as expected following the formation of the second half cycle high (NYSE:HCH) of the cycle from May.
The development of the forthcoming intermediate-term cycle low (ITCL) and the character of the subsequent rebound will provide the next signal with respect to long-term direction, so it will be important to monitor price behavior closely during the next few weeks.
We will identify the key developments as they occur in our daily market forecasts and signal notifications available to subscribers.
Disclosure: I am long SGOL.