For the second week in a row gold fell, losing this time 2.0%. Silver was worse, down 3.8%. However, both remain up 30%+ on the year. The trend remains solidly to the upside.
We still expect higher prices as wave !iii! continues to develop. After wave !iii! ends we expect a wave !iv! correction that retraces between 23.6 to 38.2% of the entire wave !iii! rally. Trading Recommendation: Long gold. Use puts as stops.
In fairly short order (no pun intended, especially as shorting Gold is a bad idea), the price shall break below the line, the rule of thumb then being to expect still lower levels.
With valuations in bubble territory, profits are too low to justify lofty stock prices. That portends a bear market to maul prices back down in line with earnings.
The “Margin of Victory” of US President-elect Donald Trump caught everyone by surprise. I will still call the recent sell-off as just a correction and nothing else in gold and silver.
