At askSlim.com we are pure technical analysts – we let the “Charts” do the talking.
Our custom multiple-time-frame annotated charts deliver insights into directional bias, timing, and key price levels by utilizing our unique askSlim methodology that combines cycle analysis, momentum/trend studies, and swing high/swing low techniques.
This chart analysis of Gold Futures (/CG) was done as a part of our weekly Market Week show. The information in this article is current as of 7/17/22.
Following the all-time high in the gold market that was marked in mid-2020, we have seen two years of consolidation. In recent weeks, a number of factors have caused a free-fall in Gold as well as the other metals markets. To mention a few…
– The riskiest period of synchronized cycle troughs in metals shows the huge capitulation that occurs most often at a junction of energetic money flows such as this
– All the four metals we follow have had negative momentum conditions in all time frames simultaneously in place for the past four weeks, a “perfect storm,” technically for a commodity segment
– The liquidity squeeze by the Fed withdrawing funds through balance-sheet reduction is a drain on all markets, at the same time demand is falling from a greatly slowing recessionary economy
– It’s also pretty perfect that the dollar strength inversely coincides with this metal’s weakness. Thus, metals cannot avoid getting caught up in this selling, a huge move to cash by investors.
At the time of this writing, momentum for /GC is still negative as it is in the process of bottoming on the weekly chart. Once this is over, it should take a healing period for the sector and some basing before the more favorable period gets traction in the final four months of the year, and into 2023.
Of course, these are all projections, and we will continue to update our analysis on these sectors of the market for our community of members here at askSlim.com.
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To learn more about the askSlim Method of performing Cycle Analysis, you can read our series, Introduction to Cycle Analysis.
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