Metals are setting up for that “Rip Your Face Off Rally”. The following charts for Gold and Silver show a very interesting setup that is unfolding as the US markets continue to strengthen – that being that the Metals are showing strength in price and we can only assume this is related to some level of FEAR in the markets or expectations that the “Equities and Bitcoin Bubbles” are nearing an end.
Gold and Silver have been one of our primary focuses for years. We warned of the “Rip Your Face Off” rally near the Third Quarter 2017 as our cycle analysis was bottoming in December.
The recent rally in Gold has been substantial and has managed to breach recent resistance levels near $1300~1310. At this point, we are expecting a moderate pullback in Gold over the next few weeks to levels likely near or below the $1300 level before the next leg advances well above $1380. The presumed formation of Wave 3, if our analysis is correct, should prompt a massive move in the metals over the next 3~7 months with a number of pullbacks along the way. Right now, it all depends on how Gold reacts to the recent highs and how deep the next retracement in price is. We could see a $1270~1300 level price pullback before the next leg higher executes. This would be the best entry zone for both traders and long-term investors.