Time to Sell Gold? The Mr. Elliott We Know Thinks So…

11/09/2017 11:38 am EST

Focus: COMMODITIES

Jack Crooks

President, Black Swan Capital LLC

The 55-week gold to US dollar index correlation is a whopping -84.3%; i.e. as gold goes up, the dollar goes down, and vice versa, writes Jack Crooks of Black Swan Capital on Thursday.

Quotable
“Nothing whets the intelligence more than a passionate suspicion, nothing develops all the faculties of an immature mind more than a trail running away into the dark.”

― Stefan Zweig, The Burning Secret and other stories

Our rendition of an Elliott Wave chart shown says it’s time to sell gold; i.e. once minor corrective rally Wave ii completes—that may be today).

Targets lower are 1,210; then 1180-level.  And if the U.S. dollar catches a major bid, there is scope to test the swing low of 1,123 from mid-December 2016 (gold vs. dollar weekly chart). 

Note: The 55-week gold to US dollar index correlation is a whopping -84.3%; i.e. as gold goes up, the dollar goes down, and vice versa. 

Gold Futures Daily Wave Chart
 chart 1

 

Gold Futures vs. US Dollar Index Weekly Chart
 chart 2

We should find out soon whether Mr. Elliott is correct.

View Currency Currents, commentary, and analysis at Black Swan Capital here…

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