In my June 24, 2013 commentary (Fear and Greed in Gold: Time For A Bounce) I wrote “While I doubt a final low will be seen in gold until the end of the year the time for a short bounce appears to be upon us.” Gold printed its closing low in the 2011 bear market on June 27.
GOLD ACTION
The rally since then took gold from $1,211/oz. to $1,420/oz. on 8/27/13 when it began its most recent decline. Last week was extremely difficult as gold saw a loss of $78/oz. from the previous Friday. Again, investors are asking “where is the bottom?”
NO FINAL BOTTOM IN YET
As I wrote in June, I don’t believe the final bottom has been seen, nor will it be, until later in the year. At this point I’m looking hard at November 26 (but keeping my options open).
THE 40-DAY CYCLE
However, based on a 40-day cycle, gold looks ready begin another bear market rally today.
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