Gold Weekly Cycle

With gold moving to $1,140 this morning, we’re finally starting to see bullish sentiment move up noticeably.  Last week’s COT report also showed there were still a number of leveraged speculators holding on to short positions.   Rising sentiment and speculator short covering are fairly typical at this point within the weekly gold Cycle and indicative of the final rising portion of any Weekly Cycle.

Gold is still in an uptrend for this Investor Cycle, this is neither necessarily bullish or surprising, because the move is well within the normal parameters of a Cycle’s early rise.  Gold traders need to be aware though that gold is scheduled to begin running into some upside resistance in the near future. The technical indicators show gold has another 2-3 weeks before topping. However, as this is Week 9, we are aware that the prior bear market Cycles mostly topped between week’s 9 and 12.  And since 2012, no weekly Cycle has gone beyond that week 12 mark.  That should cap the upside move in the coming week to around the $1,160, with a possible bullish stretch to $1,207.