SPDR Gold Trust (GLD)

[DiscoverGold]

NY Gold Futures »» Weekly Summary Analysis
By: Marty Armstrong | April 1, 2023

NY Gold Futures closed today at 19862 and is trading up about 8.76% for the year from last year's settlement of 18262. Caution is now required for this market is starting to suggest it will decline further on a monthly level. At the moment, this market has been rising for 4 months going into April suggesting that this has been a bull market trend on the monthly time level.

ECONOMIC CONFIDENCE MODEL CORRELATION

Here in NY Gold Futures, we do find that this particular market has correlated with our Economic Confidence Model in the past. The Last turning point on the ECM cycle low to line up with this market was 2022 and 2015. The Last turning point on the ECM cycle high to line up with this market was 2020 and 2011 and 1996.

MARKET OVERVIEW
NEAR-TERM OUTLOOK

The historical perspective in the NY Gold Futures included a rally from 1999 moving into a major high for 2020, from which the market has been in a bearish trend since then moving into the low in 2022 forming a reactionary trend of 2 years bottoming at 16183. Nonetheless, we have not elected any Yearly Bearish Reversal to date from the turning point of 2020, which tends to warn that the 2020 high could still be challenged until we elect a Yearly Bearish Reversal. Notwithstanding, 2022 was, in fact, an outside reversal to the downside closing lower than the previous year. Nonetheless, we have elected all four intermediate Yearly Bullish Reversals to date from the turning point of 2022 from this 2022 reaction low.

Curiously, the market has been only consolidating since that 2022 low and has been unable to exceed the high of that year while holding the low. The last Yearly Reversal to be elected was a Bullish at the close of 2022. However, the market has been unable to exceed that level intraday since then.

This market remains in a positive position on the weekly to yearly levels of our indicating models. Nevertheless, it closed last year on the weak side down from 2021. Pay attention to the Monthly level for any serious change in long-term trend ahead.

From a perspective using the indicating ranges on the Daily level in the NY Gold Futures, this market remains moderately bullish currently with underlying support beginning at 19777 and overhead resistance forming above at 20065. The market is trading closer to the support level at this time.

On the weekly level, the last important high was established the week of March 20th at 20149, which was up 20 weeks from the low made back during the week of October 31st. We have been generally trading down to sideways for the past week, which has been a very dramatic move of 3.469% in a stark panic type decline.

The broader perspective, this current rally into the week of March 20th has exceeded the previous high of 19752 made back during the week of January 30th. This immediate decline has thus far held the previous low formed at 16183 made the week of October 31st. Only a break of that low would signal a technical reversal of fortune and of course we must watch the Bearish Reversals. Right now, the market is above momentum on our weekly models hinting this is still bullish for now as well as trend, long-term trend, and cyclical strength. Looking at this from a wider perspective, this market has been trading up for the past 7 weeks overall.

INTERMEDIATE-TERM OUTLOOK

YEARLY MOMENTUM MODEL INDICATOR

Our Momentum Models are declining at this time with the previous high made 2020 while the last low formed on 2022. However, this market has rallied in price with the last cyclical high formed on 2020 and thus we have a divergence warning that this market is starting to run out of strength on the upside.

After closing above last year's low of 16733.

Interestingly, the NY Gold Futures has been in a bullish phase for the past 4 months since the low established back in November 2022.

Critical support still underlies this market at 18007 and a break of that level on a monthly closing basis would warn that a sustainable decline ahead becomes possible. Immediately, the market is trading within last month's trading range in a neutral position.

DiscoverGold

Click on "In reply to", for Authors past commentaries