Last month I penned an article explaining how gold tends to form interim highs/lows in the opening days of a new month. That article was timely as prices topped that very day at $1519.20 and fell to $1446.20 by November 12th.
Monthly Trend Changes
Notice in the chart below how gold sometimes changes course at the beginning of a month. Not always, but enough to get your attention.
- May 2nd, prices formed a 6-month low at $1267.30
- July 1st, prices formed a short-term low at $1384.70
- August 1st, prices formed an interim low at $1412.10
- September 4th, the gold cycle peaked at $1566.20
- October 1st, prices created a short-term low at $1465
- November 1st, prices formed a short-term high at $1519.20
- December 3rd or 4th???
If gold continues higher into Friday’s close, then the odds support a 6-month low at $1446.20 on November 12th.
If gold slips back below $1470 in the coming days, then this is likely an early December top, and prices are positioning for one final decline towards the 200-day MA.
AG Thorson is a registered CMT and expert in technical analysis. He believes we are in the final stages of a global debt super-cycle. For more information, please visit https://goldpredict.com/
This article was originally posted on FX Empire
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