Gold Price Exclusive Update

Technical Analyst & Editor
July 31, 2021

Our proprietary cycle indicator is DOWN but bottoming.

To public readers of our updates, our cycle indicator is one of the most effective timing tool for traders and investors. It is not perfect, because periodically the market can be more volatile and can result in short term whipsaws. But overall, the cycle indicator provides us with a clear direction how we should be speculating.

Investors

During a major buy signal, investors can accumulate positions by cost averaging at cycle bottoms, ideally when prices are at or near the daily 200ema.

During a major sell signal, investors should be hedged or in cash.

Traders

Simply cost average in at cycle bottoms when prices are at or near the daily 200ema; and cost average out at cycle tops when prices are above the daily 50ema.

Gold sector is on long term SELL signal.

GLD is on short term buy signal.

GDX is on short term buy signal.

XGD.to is on short term buy signal.

GDXJ is on short term buy signal.

Analysis

Our ratio is on buy signal.

Major support for gold is now at the weekly 200ema, just below $1600.

Major support for $HUI is at the 200ema, around 245.

Much of gold’s intermediate direction will depend on how the dollar resolves the current double bottom and double top.

The dollar has a potential cup with handle in progress.

Summary

Long term – on major SELL signal.

Short term – on buy signals.

Gold sector cycle is down but bottoming.

$$$ We closed out all of our positions with good profits, and now waiting for new set ups.

Disclosure

We do not offer predictions or forecasts for the markets. What you see here is our simple trading model which provides us the signals and set ups to be either long, short, or in cash at any given time. Entry points and stops are provided in real time to subscribers, therefore, this update may not reflect our current positions in the markets. Trade at your own discretion.

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Jack Chan is the editor of Simply Profits, established in 2006. Chan bought his first mining stock, Hoko Exploration, in 1979, and has been active in the markets for the past 37 years. Technical analysis has helped him filter out the noise and focus on the when, and leave the why to the fundamental analysts. His proprietary trading models have enabled him to identify the NASDAQ top in 2000, the new gold bull market in 2001, the stock market top in 2007, and the US dollar bottom in 2011.

Gold weighs 19.3 times as much as an equal volume of water.

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