Gold From Conservative Consolidation Into Convoluted Correction


We are now proven wrong, (following last week's piece having been intently entitled "Gold More Consolidative Than Corrective Before 'BOING!'"). And yet we "feel" as Gold Bullish as ever. Convoluted indeed.

To be sure, the "BOING!" we'd so graphically portrayed a week ago is sitting out there. But Gold has since tested our conviction that price these many past weeks had been consolidating rather than correcting.

Correction: it's now correcting. 

Which demonstrates once again that a lot can happen even in a shortened trading week, Gold settling Friday at 1791, -4.6%. As well, a lot can happen in the space of a mere hour, Gold on Friday falling from 1804 at 05:00 Pacific Time to as low as 1773, a -1.7% dump within 60 minutes. Moreover, it was Gold's third worst week in this calendar year and the fourth worst since that ending  November 11, 2016. 

Convoluted against common sense as it seems, let's go straightaway to Gold's weekly bars from one year ago-to-date. Upon having achieved its All-Time-High of 2089 on August 7, Gold has retreated beyond consolidation -- encased within the light-blue box as shown -- back down from the 2000 milestone level through our "Gateway to 2000" (1900+) and further through our "Final Frontier" (1800-1900) to now find itself priced within the battle zone of "The Northern Front" (1750-1800) which was critical resistance during 2012, (per the Gold Structure chart near the foot of this missive). Gold's stance has thus gone from conservative consolidation -- notwithstanding the descending red-dotted parabolic Short trend -- to now in toto outright convoluted correction of -17.2% since the All-Time High:

However, it being month's end save for one trading day pending, Gold year-to-date per the following BEGOS Markets Standings is nonetheless still +17.3%, with Silver remaining atop the table at +26.7%, (even now at 22.68, -24.2% from her year's high of 29.92). But the real show-stealer of late is Copper, +21.6% through these 11 months (less a day) of 2020, knocking Gold -- which is said to be a Copper follower -- down from second to third spot in the stack:

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