The last point might end up being more important than we think. Looking at this week’s commitment of trader’s report (COT), I’ve noticed that speculative Long and Short positions have barely turned off their recent extremes. Meaning that this $90 first DC move really has not come off the back of a shift in speculative positions. This is precisely why you do not see any large spikes in volume or price on any of the given 20 days of the Cycle. Therefore, from what I can tell, a larger degree rally lies potentially ahead for this Investor Cycle, setting the scene for an impressive 2nd Daily Cycle to come.

When the gold Cycle first turned higher almost a month ago, I said that we could expect a $100 rally over the first 20 sessions. As it stands today, the Cycle has hit day 20 and rallied $90+ off the Cycle Low. It is at a point where we should check our short-term expectations going forward.