[vc_row][vc_column][vc_column_text title=”Gold Update”]My last ElliottWavePlus.com blog post about gold (on December 5) suggested that the deep correction in Gold was nearly finished. Gold bottomed on December 15, and has rallied nicely through today.
ElliottWavePlus “Pro Plan” and Basic Plan” subscribers were made aware in the days leading into the December 15 low that Gold was likely to move a bit lower, primarily because of a triangle setting up in GDX. Here’s my chart of GDX that all paying subscribers received on December 11:
Notice my comment in the lower-right section of the chart: “The expectation of this last down-thrust from a small triangle is supported by the internal wave structure of the recent sideways consolidation and by the expectation that the US$ will not top until Dec 23-27”.
I was very gratified this week to receive the following email from an ElliottWavePlus.com “Pro Plan” subscriber:
A huge thank you for a $30,000.00 gain in my metals trade over the last month. I played MUX, GDX, GDXJ, NUGT, JNUG, SLV, USLV, and UGLD and closed the positions yesterday for a $30,000.00 gain. I plan to re-enter this exact trade in a few weeks unless the cycles and charts advise otherwise. It sure looks like wave 3 of this trade has not happened yet but I’ll stay on the sidelines until I get more clarity.
You have been the best thing that has happened to my investing strategies. I am eternally grateful for your service and I greatly look forward to all of your updates. I am a professional trader who is making a living off of my investments, and I have found your combination of Hurst cycles, Elliott Wave Theory, and Fibonacci targets to be extremely helpful.
Please feel free to use any of my comments in marketing as I am happy to spread the word of your truly inspiring talent.
Thank you and God Bless,
J.F.” – January 10, 2017
Summary: Gold carved out 5-waves up from December 15 through January 5. Based on my system, I believe a multi-week correction has commenced, starting with an expanded flat. The correction is likely to continue through month-end, although the target date for the end of the correction will almost certainly morph over the next few days. When the correction is finished, wave 3 to the upside should be next. Sentiment is still extremely bearish, so the short-squeeze in Gold isn’t over yet.
Sid Norris – ElliottWavePlus.com[/vc_column_text][/vc_column][/vc_row]