We’ve been warning our members that this move was going to happen and it looks like it's just starting to initiate. The US dollar and metals markets are about to rotate in dramatic form over the next few weeks – possibly months. Right now, what we can tell you is that our cycle analysis and adaptive learning models are showing we are in for a very dramatic move in these markets.
This first chart is a gold weekly chart showing our adaptive learning price modeling system and the predicted price activity going forward. One can easily see this weekly double top formation is predicting prices to drop by nearly 5~8% over the next few weeks before basing near the $1250 to $1275 levels. This should be a very clear warning to metals investors that gold and silver are setting up for a lower price rotation before the next big move higher.
This next chart is a gold monthly chart and one can easily see the adaptive learning modeling system is predicting massively lower prices over the next few months. We would caution readers that these dramatically lower prices (toward and below $1000) would be an incredible downward move in the metals. It would also indicate that the US and global economies continue to “melt-up” extensively over the next few months.
We believe the downside rotation is accurate, yet we don’t believe prices will fall below $1000 within 2~3 months in gold. Although, one can never accurately predict the future with any degree of certainty.
This next chart is a daily palladium chart showing our cycle analysis. Once can clearly see the relationship between the cycle levels and price activity. Currently, the cycles are showing us that price is weakening and that a lower price cycle is setting up to drive prices back to near or below $100. All of the metals markets are setting up like this currently and silver is the only metal that shows the potential for a muted downside price swing.
This last chart is a daily US dollar cycle analysis chart (via PowerShares DB US Dollar Bullish ETF (NYSE:UUP)) showing what we believe will be a primary driver of the rotation in the metals markets—the predicted US dollar price advance. Take a look at this chart. See the aggressive cycle levels that are expected to happen in the immediate future?
This type of advancement is usually associated with a fairly dramatic upward price move. We expect this move to mature over the next 2~3 weeks culminating in a general market top formation for the US majors near March 15-19, 2018, as our earlier research has shown.
