Golden Cornerstones

Every bigger construction project needs to be well planned. That being so, neither unprofessional construction companies nor impatience will add to a successful outcome. Rather, every element and every step of the process requires planning and an eye for details. Fulfilling these requirements will produce truly terrific results. In the gold market, the bears and bulls worked long together to build the cornerstones of a mega-project, and they have finally completed the fundament! So far, no one really knows what it will be, but our Daily Market Update team was able to look into the blueprints and predicted already more than 4 months ago that the gold price will decline to a target area between $1722 and $1606. Leading the way, "Bear Inc" helped a lot, pulling the price below $1767 and keeping it there. As such, we have witnessed a declining gold price over the whole last month. Now, we are where we wanted to be! For 4 months, we are waiting to dive into the target area between $1722 and $1606, and last Friday, we finally crossed the upper threshold.

Instead of a direct and lopsided decline, the bears closely cooperated with the bulls to steadily pull the price down by including healthy corrections. The price needed to fall under $1767 in order for us to concentrate on the blue target box fully. At some point, we even saw gold prices as low as $1704, and we expect the price to dive a bit deeper into the box to reach areas around $1640. From there, we can start building the mega-project that we have shortly touched upon earlier. Our primary expectation foresees a turnaround in the blue box, which will lead to a solid bullish run that pushes the gold price to new heights. Accordingly, we believe that very lucrative entries into the gold market are possible within that blue box! For the next couple of days and weeks, the bears need to be able to stabilize the price within the range of $1722 and $1606. In an alternative scenario, the bulls have a 35% chance to come back and push the price back up above $1879. From there, the way would be paved to tackle the $1966 mark.

This means that the GLD has dropped under its support line at $166.05, equivalent to the $1767 support in the regular gold market. It is also time for the GLD to move down South further and we expect this movement to continue until somewhere around $155.73. Here, another great project is constructed, and we will see significantly higher prices here, as well.

In the following course of action of the gold price, we expect it to consolidate in the zone between $1722 and $1606. There we will have a very pretty entry point for the following upwards trend.

Gold 144min Chart

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Gold 2 Day Chart

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GLD 4h Chart

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