Gold: Resolution of Next Wedge
Barry Dawes of Martin Place Securities reviews the state of the U.S. dollar, the gold market, the banking sector, the copper sector, and crude steel.
Key Points
Goldo About to complete the next wedge
o Upside resolution would be strong
o New highs in most currencies
Nth Am Gold stocks continue to baseo Still within parabola
o XAU heading for 165
ASX Gold Stocks consolidating ahead of breaking necklineo H&S reversal pattern setup
o Much higher target levels generated
o NST looking for another sharp move
US equitieso S&P 500 looking to break sharply higher
o Could be heading for new highs on short covering
o Housing sector index at 16-month highs
Still housing shortageBanking sector bottoming on uptrend line?US$ - Heading Higher
Breaks 7-month downtrendEuro at a critical levelYen weaker againBHP Looking Strong
Copper bottomingChina crude steel output strong againGold
Gold seemed surprisingly calm overnight while it consolidates above US$2000.
The US$30 sell-off on Thursday clouded the US$20 recovery on Friday, so the volatility in gold is very positive for this market.
Note gold is now making new highs each week in other currencies.
Technically, gold is ready for another sharp move higher.
The resistance around US$2000 is now supported.
Gold making new highs in Euros.
Gold Stocks
Still within the parabolaGold stocks would be in wave 3Zone of maximum accelerationNext stop 165 on the XAU
The short term should see good support here.
ASX Gold Index
Need to keep repeating the big picture here.
7700 is important long term resistanceClear 'Neckline' for Head and Shoulders reversalTarget is around 12,000 as intermediate after passing 9888 previous all time highOver 20,000 longer termNice consolidation pattern hereThe big picture supports a MASSIVE rise in the XGD.
NST is Leading
Disappearance of NCM will only boost NST higher
US$ Index
Rally continuingOther currencies looking weak
Euro
Critical level hereShould bounceBreaking below 108 should lead to further weakness
Japanese Yen
Heading lower
US Equities
Short term is setting up for a big breakoutA breakthrough 4200 would signal a strong rise
Housing Sector Index
New 16 month high!
Big inventory catch up > 4 years.
Banking sector recovering.
Copper
Bottoming
China Crude Steel Output
Strong recoveryNot far from all time highsIron ore should soon pick up again
BHP
Following copper and iron oreLooks likely to see significant new highs in 2023Some short term pull back possible
Timing is everything.
Heed the markets, not the commentators.
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