Gold Flashing Warning Signs – Commodity Piece
It’s Time To Rotate Profits From Gold
NOTE: We’re going to be raising our membership prices across all tiers very soon.
Monthly would increase from $30 to either $35 or $40.
Yearly would increase from $240 to $350.
Founding Member (with Discord access) would increase from $600 to $800.
If you want to secure our current pricing with a guarantee to always get that price throughout your membership (irrespective of any further price increases), then now would be the perfect time to do it!
In the last 2 Precious Metals’ Commodity Updates (found here and here), we’ve been warning of Gold running out of fuel in the near-term.
After reaching the 3.618 Fib extension ($3451) of the October to December 2025 range, Gold has pulled back by almost 9%.
This move was long due with 2 drives of bearish RSI divergence indicating underlying weakness.
The question now is whether this pullback is over or if there’s more to come?
Based on multiple different data points, our base case right now is that a deeper pullback is likely, albeit after a dead cat bounce.
So, if you trust in this data, then use any bounces from here to offload Gold (only from your trading portfolio) and rotate that capital into other more attractive areas of the market.
Remember, this is only for your trading portfolio because we still think that Gold has more upside in the mid-to-long term after resetting a bit.
Looking at Gold’s sentiment indicator (using the 50-day MA to smooth it out), we can see that it has gotten quite bullish.
This has typically occurred around short-term pullbacks or consolidation phases.
Even Gold’s technical picture is pointing for such an (we’ll soon see what our Cycle Forecasts says for it – Gold investors will definitely want to see this!)
Another key signal that we were waiting for is the Gold VIX spike.
Below is what we had written in the last article’s Premium Section.
Now, we’ve officially had the Gold VIX spike (something we typically only cover in the Premium Section, but giving it away for free this time!)
This index is very similar to the VIX that we have for the stock market, but with one key difference.
Unlike with stocks, sometimes with Gold’s volatility we can see it explode higher on the upside, not just the downside.
So, an extremely high level of volatility can be a positive sign (if Gold just sold off hard) or a negative sign (if the Gold just rallied hard).
Basically, any time we see Gold’s VIX jump to an extremely high level, there is a higher risk that the trend (could be bullish or bearish) is near an end, at least over the short- to medium-term.
The recent spike came with a big move up, indicating a negative sign and pointing to a pullback.
Silver Analysis
Silver has broken below the $32.63 support level and could test the $30.75 Supertrend support or the $28.84 major horizontal support (depending on the intensity of the pullback).
Net-net we think there’s some downside pressure on Silver right now because of a pullback on Gold, but once Gold stabilizes/sees a short-term bounce, we think Silver is likely to outperform.
Overall, it looks like Silver is in a range between $28.84 to around $35.
A confirmed break beyond either of these levels would be decisive for the next leg.
Silver’s sentiment, while bullish, hasn’t reached those extreme bullish conditions yet.
So, if Gold bounces first before pulling back lower, then Silver could still see more upside before the sentiment around it reaches more extreme levels that have usually led to short-term corrections/consolidations.
In the next section, we’ll cover:
1) Our proprietary Cycle Forecasts for Gold and Silver
2) Analyzing Gold Miners
3) Analyzing Silver Miners and Junior Silver Miners
4) 2 Money Making Trade Setups for Gold & Silver stocks
Find our membership cost/benefits below. If you’re serious about Making Money (our primary goal at Cycles Edge), then the Premium Sections are key for you!
